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 process American cheese
1 (10 oz.) pkg. frozen chopped spinach, thawed and drained
oyster crackers (optional)

In a 3-quart saucepan, sauté onion in butter until tender. Stir in the 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 4 to 5 minutes or until heated through. Serve with oyster crackers, if desired.

Makes 5 to 6 servings.