Peeled and sliced potatoes to fill 5 or 6 quart saucepan
1/4 c. diced onion
6 strips bacon, uncooked

Cook potatoes with onions until almost done (don't over cook).

SAUCE:

1 c. milk
2 tbsp. flour
1 1/2 tbsp. butter
1/2 tsp. salt (optional)
8 oz. shredded Velveeta cheese
1 can cream of mushroom soup
3/4 c. milk

In another pan make sauce, bring to boil and add cheese, stir until melted, add mushroom soup and milk.

Drain potatoes and layer them in butter 13 x 9 inch baking pan, pouring sauce between layer and on top. Top with strips of bacon (optional). Bake at 350 degrees, covered, 30 minutes (uncovered last 15 minutes).