Marinate water chestnuts in soy sauce at least 30 minutes; drain and roll each in sugar. Wrap each water chestnut with a piece of bacon, securing with a toothpick; arrange on cake rack in a shallow baking pan. Bake at 400 degrees for 30 minutes or until golden brown. Drain on paper towels. Keep hot on warming tray. Yield: about 16 appetizers.
Note: This appetizer may be prepared ahead of time and stored in refrigerator until ready to bake.