3 cans whole water chestnuts
1 lb. bacon, cut into thirds
1 c. ketchup
1 c. sugar

Cut bacon strips into thirds, drain water chestnuts. Wrap each chestnut in bacon pieces, secure with toothpick. Bake wrapped chestnuts at 350 degrees for 30 to 40 minutes on a cookie sheet until crispy. Heat in a saucepan:

1 c. ketchup
1 c. sugar

Add the wrapped, baked chestnuts and serve in fondue pot. (May make a day ahead, reheat in saucepan and transfer to fondue pot to serve.)