Never-Fail Scalloped Potatoes

""Take the chill off any blustery day and make something special to accompany meaty entrees. This is the best scalloped potatoes recipe ever, and my family loves when I serve it." —Agnes Ward, Stratford, Ontario..."

INGREDIENTS
2 tbsp butter
3 tbsp all-purpose flour
1 tsp salt
1/4 tsp pepper
1-1/2 cups fat-free milk
1/2 cup shredded reduced-fat cheddar cheese
2 lb red potatoes (peeled and thinly sliced (about 4 cups))
1 cup thinly sliced onions (divided)
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