2 lb. yellow squash, cut into 1/4" slices
1/2 c. water
1/2 tsp. 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
2 tsp. sugar
1/4 tsp. pepper
Garnishes: Sweet red pepper & parsley

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 (3 minutes). Combine vegetables and remaining ingredients; spoon into a lightly greased 12 x 7 x 2 inch baking dish. Bake at 350 degrees for 30 minutes or until bubbly. Garnish, if desired. Yields 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 5 minutes before baking.