Preheat the oven to 325ºF.
Cook the bacon in a skillet until brown and crunchy. Allow the bacon to cool. Crumble it by hand or pulse it in a food processor.
Add the liver to the skillet with the bacon drippings and sauté until the liver is firm and no longer pink.
Pulse the cooked liver in a food processor and slowly add the canola oil or bacon drippings. Process till the mixture forms a paste. Add the water slowly, and continue processing till smooth and creamy.
Whisk the flour, baking powder, and bacon bits together.
Make a well in the flour and add the liver mixture all at once. Combine with an electric mixer on medium speed using a paddle attachment. Mix till dough forms and all the ingredients are thoroughly combined.
Turn the dough out onto a slightly floured surface and shape it into a flat disc. Flatten the dough to a ½-inch thickness.
Bake 18–25 minutes. Remove the dough from the oven, cool it slightly, and cut it into ½-inch strips. Rotate the pan and cut the strips into ½-inch cubes. Separate the cubes and return pan to oven. Bake biscuits for another 15–20 minutes. Remove the biscotti from the oven, cool them on a baking rack, and store them in a cookie tin.