Scalloped Cheese Potatoes

""Mom decided to devise her own recipe for scalloped potatoes, and she cooked up a winner with this one. There was never a morsel left in the serving dish! The flavor of mushrooms gives the potatoes a unique taste that's compatible with the Poor Man's Steak." &Mdash; Dorothy Bowen, Thomasville, North Carolina..."

INGREDIENTS
4 pounds potatoes, peeled and thinly sliced
2 cans (10-3/4 ounces each) condensed cream of mushroom soup, undiluted
1/4 cup butter, divided
2 cups shredded sharp cheddar cheese, divided
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