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Rinse and scrub potatoes to remove any visible dirt, and then peel using a vegetable peeler. Cut the potatoes into 1- to 2-inch chunks.
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Pour the water into a 6-quart Instant Pot and set either a trivet or a steamer basket inside. Add the potatoes and then place the eggs on top.
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Set the Instant Pot to high pressure and cook for 5 minutes. Immediately release the pressure as soon as the timer goes off.
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While the potatoes are cooking, whisk together the mayonnaise, mustard, relish, salt, and black pepper in a medium-sized bowl.
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Once cooked, remove the basket or trivet from the pot and pour out the water. Add the potatoes back into the pot. Using a potato masher or a large fork, break apart the potatoes into smaller chunks, being careful not to overly mash them.
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Let the hard-boiled eggs soak in an ice water bath for 5-10 minutes, or until cool to the touch. Peel and then coarsely chop them.
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Add the mayo-mustard sauce, crumbled bacon, and eggs to the potatoes. Stir until everything is just mixed.
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Serve immediately or refrigerate for at least 2 hours to serve chilled. Sprinkle with freshly chopped dill and enjoy!