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CHEESE POTATOES

6 medium potatoes
1 small onion
2 Tbsp. margarine
1/4 c. all-purpose flour
2 c. milk
3/4 lb. Velveeta cheese
salt
pepper

Peel potatoes and cut into cubes. Chop onion. Cook potatoes and
onion for about 7 minutes in a large saucepan. Do not overcook.
Drain and cool. In small pan, melt margarine. Remove from heat and
add flour. Mix well. Slowly stir in milk. Return to heat and cook
until thick, stirring constantly. Cut cheese into cubes and add to
white sauce, mixing until melted. Add salt and pepper to taste. In
large bowl combine potatoes and sauce. Be careful not to break up
potatoes. Pour into 1 1/2-quart baking dish. Bake at 350 degrees for about
30 minutes.

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