3 tbsp. butter
3 tbsp. flour
2 c. milk
4-5 lg. baking potatoes
1 lg. onion, chopped
1 c. cubed cooked ham
1 tsp. salt
1/4 tsp. pepper
4 c. (1 lb.) shredded American cheese

Melt butter in heavy saucepan over low heat. Add flour, stirring until smooth. Cook 1 minute, stirring constantly. Gradually stir in milk, cook over medium heat, stirring constantly until thickened and bubbly.

Peel and cut potatoes into 1/4 inch slices. Layer 1/2 of potato slices, onion, ham, salt, pepper, cheese and white sauce in order given in 1 1/2 quart casserole dish. Repeat. Cover and bake at 350 degrees for 2 hours. Serves 8.