Cheesy Hash Brown Casserole

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INGREDIENTS
6 Tbsp. unsalted butter, plus more for pan
1 small onion, finely chopped or coarsely grated
¼ cup all-purpose flour
2½ cups whole milk
1 cup sour cream
2 tsp. Diamond Crystal or 1¼ tsp. Morton kosher salt
½ tsp. freshly ground black pepper
¼ tsp. garlic powder
1 30-oz. package frozen shredded hash browns, thawed
10 oz. sharp cheddar, coarsely grated (about 2½ cups), divided
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