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Scalloped Potatoes with Onions

4 cups thinly sliced red potatoes with skins on
1 medium onion thinly sliced and separated into rings
3 T butter
3 T flour
1 1/2 cups milk
1 tsp. salt
1 dash pepper, cayenne if you like spicy foods
1 1/2 cup grated sharp cheddar or Monterrey Jack (my favorite) cheese 
1/2 cup grated cheese to sprinkle on top
Paprika
 
Directions:
In a small sauce pan, melt butter and blend in flour.  Let lightly cook so flour isn't raw tasting.  Add milk and blend with a whisk.  Season with salt and pepper.  Cook sauce on low until smooth and lightly boiling, stirring occasionally with a whisk (about 6 minutes).  Reduce heat to simmer and stir in 1 1/2 cup of cheese.  Place half of the sliced potatoes and onion rings in a lightly greased one quart casserole dish.  Pour half of the cheese sauce over potatoes and onions. Repeat with second layer of potatoes and onions and cheese sauce. Sprinkle 1/2 cup of grated cheese on top.  Dust lightly with some paprika for color.  Bake uncovered for 60 minutes at 350 degrees.  
If you really like a spicy dish, try using cubes of pepper jack cheese with the grated cheese to equal 1 1/2 cup of cheese. 
You can also add some diced ham or sausage for a complete meal in a hurry.  YUMMY!