Granny Bacon was known to be living in Verigan's Hold when the Sands were released upon the world, and was a redhead when she was younger.
Granny's age is not yet specified, but she is assumed to be at least over a hundred and fifty.
It is unknown when Granny moved to Mistral City and opened up her bakery.
Sometime after this, Karpath left Knight Peculier, and Isabel Peculier in Granny's care, soon after this Adaephon took them in to live at Verigan's Hold. That last bit is only known because it was found on the Museum Server, when it was reopened.
Granny Bacon debuted in Episode 3 of Season 3, where she and Simon soon quickly became interested in each other.
It is heavily implied that they had some sort of physical relationship, given by noises overheard by Lysander and Xephos, who were disgusted.
Because of the relationship, Granny gave Honeydew a discount on a golden apple, which was used to help Old Peculier.
Granny Bacon wasn't seen again until Episode 10, when Mistral City is burned down by Jock Fireblast. She is kidnapped by the Cult of Israphel, but despite their best efforts, Xephos and Honeydew were unable to save her; she was turned into a zombie and attacked them shortly after. They decided to put her out of her misery, and ended her life, shortly after cowering.
Mourners from all over Minecraftia pay their respects to Granny Bacon. Father Braeburn held a service in the new church. The preacher told the mourners her last confession which was sex with a "randy" dwarf. During the service, the zombified Granny Bacon, in a struggle of trying to jump out of her grave, planted a flower, broke a block and eventually jumped out of her grave and attacked everyone, it was believed to be Peva3 who ended her second zombie life.
After Granny was killed a second time, a loud explosion was heard. (Fumblemore was instantly blamed.) The front of the church was destroyed, and opened up to a large lake of lava under the foundations, that turned out to be a jumping puzzle, that many people died trying to complete. Honeydew decided to go all around the lava lake, totally avoiding a hole, that Xephos later found, that lead to an even more confusing and dangerous jumping puzzle, with a sign at the entrance, that stated: 'Watch Your Step, Hugs And Kisses, - Israphel', They cheated using dirt that the others collected. Then it lead on to a couple of mazes, and finally, a castle belonging to Israphel.
In a poll that was held from January to February 2013 on this wiki with all Season 3 characters to choose from, Granny Bacon was placed 8th overall with 130 votes out of 4412 votes.
Because the skin upload wouldn't work, Granny Bacon's skin was actually a re-texture of Leather Armor, explaining her large size.
This is also why Old Peculier gave Simon new boots early on to replace his Leather Boots.
In Verigan's Hold, there is a letter that says that Old Peculier and Isabel were sent to Granny Bacon to raise, in case Karpath didn't return, making her their adoptive mother.
This was most likely done because Granny Bacon was a member of Verigan's Adventurers, and Karpath trusted her.
During Sips' and Sjin's Minecraft - Episode 2 - Sweaty Leather, we find out that Sips is Granny Bacon, and Sjin says that they spoiled the secret. At the beginning of the episode, Sjin said that they should wait for Sips to open his inventory, so they didn't spill the beans. It is also stated in "Tekkit 70 - Eggtastic".
In Question time with Sjin - Sjin says that he also plays Granny Bacon.
In a recording by nilesy for reddit with rythian, nilesy, sjin, and zylus, they say that they have all played granny_bacon at some point and that rythian was the forward and nilesy the backspace and sips and sjin is left and right. here is the link to the audio: http://tindeck.com/listen/nufa