2 lb. yellow squash, cut into 1/4" slices
1/2 c. water
1/2 tbsp. salt
1 c. chopped onion
1 c. chopped sweet red pepper
1/4 c. butter, melted
1 egg, beaten
1 c. (4 oz.) shredded cheddar cheese
1 (8 oz.) can sliced water chestnuts, drained
2/3 c. mayonnaise or salad dressing
2 tsp. sugar
1/4 tsp. pepper

Combine squash, water and salt in a medium saucepan; bring to a boil. Cover, reduce heat and simmer 10 minutes or until squash is tender. Drain well and set aside.

Saute onion and red pepper in butter until crisp tender, about 3 minutes. Combine vegetables and remaining ingredients; spoon into lightly greased 12"x7"x2" baking dish. Bake at 350 degrees for 30 minutes or until bubbly. Yield: 8 servings.

NOTE: To make ahead, prepare as directed but do not bake. Cover and chill up to 2 days. Remove from refrigerator; let stand 30 minutes. Bake as directed.