Melt butter in saucepan and add remaining ingredients. Stir until mixture is simmering. This should make enough sauce for 4 cans of water chestnuts.
Directions For Wrapping Water Chestnuts: Cut bacon into pieces big enough to wrap around water chestnut and place on cookie sheet seam down. After wrapping all chestnuts I put filled cookie sheet into freezer until they are firm enough to place in plastic bags until I am ready to cook them.
Cooking Instructions: Cook seam down in cake pan or something deep enough to hold excess grease at 350 degrees until browned. Drain on paper towels. I usually put baked water chestnuts in the crock pot and pour the sauce over them and cook on low just to keep warm (a chafing dish works well also). Avoid unnecessary stirring.
