2 lb. yellow squash in 1/4 inch slices
1/2 c. water
1 c. onion, chopped
1 c. sweet red pepper
1/4 c. butter
1 egg, beaten
1 c. (4 oz.) shredded Cheddar
8 oz. can sliced water chestnuts, drained
2/3 c. mayonnaise
2 tsp. sugar
1/4 tsp. pepper

Combine squash, water and salt. Bring to boil, then cover and simmer 10 minutes or until tender. Drain. Saute onion and pepper in butter 3 minutes. Mix vegetables with remaining ingredients. Pour into greased 7 x 12 inch pan. Bake 30 minutes at 350 degrees.