1/2 c. chopped onion
2 tbsp. butter
1/3 c. all-purpose flour
1/2 to 1 tsp. salt
1/8 tsp. ground nutmeg
2 1/2 c. milk
1 c. water
3/4 c. cubed American cheese
1 pkg. frozen spinach (10 oz.), thawed and drained
oyster crackers

In a 3-quart saucepan, sauté onions in butter until tender. Stir in flour, salt and nutmeg until smooth. Gradually add milk and water, then the cheese. Cook and stir over medium heat until cheese is melted. Add spinach and simmer for 5 to 6 minutes until heated through. Serve with oyster crackers. Double for 10 to 12 servings.