6 medium potatoes (3 pounds), peeled and thinly sliced
1 large onion, thinly sliced and separated into rings
1 (6-ounce) package process American cheese slices
3/4 teaspoon salt, divided
3/4 teaspoon pepper, divided
1 cup (4 ounces) shredded Cheddar cheese
1/4 cup butter or margarine
1/4 cup all-purpose flour
3 cups warm milk

COOK potato in boiling water to cover 5 minutes; drain.
LAYER one-third potato slices, one-third onion slices, and one-third cheese slices in a lightly greased 13- x 9-inch baking dish. Sprinkle with 1/4 teaspoon salt and 1/4 teaspoon pepper. Repeat layers twice with remaining potato, onion, cheese slices, salt, and pepper. Top with Cheddar cheese.
MELT butter in a heavy saucepan over low heat; add flour, whisking until smooth. Cook, whisking constantly, 1 minute. Gradually whisk in milk until smooth. Remove from heat; pour over potato mixture.
BAKE at 400° for 35 minutes or until golden. Let stand 10 minutes before serving. Yield: 10 to 12 servings.
Prep: 30 min., Bake: 35 min.

From Carolyn Sweterlitsch.