Cheesy Scalloped Potatoes

Recipe By: Better Homes & Gardens New Cook Book, 10th Edition
Serving Size: 4

1/4 cup chopped onion
2 tablespoons butter or margarine
2 tablespoons all-purpose flour
1/4 teaspoon salt
1/8 teaspoon pepper
1 1/4 cups milk
3 medium potatoes -- peeled and sliced
3/4 cup shredded American cheese

For sauce, cook onion in butter till tender. Stir in flour, salt, and pepper. Add milk all at once. Cook and stir till thickened and bubbly. Add in cheese until melted. Remove from heat. Place half the sliced potatoes in a greased 1-quart casserole. Cover with half the sauce. Repeat layers.

Bake, covered, in a 350 oven for 35 minutes. Uncover; bake 30 minutes more or till potatoes are tender. Let stand 5 minutes before serving.

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