1/4 c. chopped onion
2 tbsp. butter
1/4 tsp. salt
1/8 tsp. pepper
2 tbsp. all-purpose flour
1 1/4 c. milk
3 med. potatoes, peeled and thinly sliced (3 c.)
3/4 c. shredded American cheese

For sauce, cook onion in butter until tender. Stir in flour, salt, and pepper. Add milk all at once. Cook and stir until thickened and bubbly. Stir the shredded American cheese into thickened sauce until melted. Remove from heat.

Place half the sliced potatoes in greased 1-quart casserole. Cover with half the sauce. Repeat layers. Bake, covered in a 350 degree oven for 35 minutes. Uncover, bake 30 minutes more or until potatoes are tender. Let stand 5 minutes before serving. Serves 4.