3/4 c. chopped onion
2 tbsp. butter
1/3 c. flour
1 scant tsp. salt
1/8 tsp. nutmeg
2 1/2 c. milk
1 1/4 c. water
3/4 c. cubed American cheese
1 (10 oz.) pkg. frozen spinach, thawed and well drained

In a 3-quart saucepan, sauté onions in butter until tender. Stir in flour, salt and nutmeg until smooth. Gradually whisk in milk and water. Add cheese; cook and stir over medium heat until melted. Add spinach; cover and simmer for 4 to 5 minutes or until heated through. Serve with oyster crackers.

Yield: 5 to 6 servings.