2Wash and peel potatoes. Cut into fourths, then into slices about 1/4 inch wide. Place in large roasting pan. A large pan should be about half full.
3Remove skin from onion and rinse. Cut in half, and then thinly slice into half rings. Layer on top of potatoes.
4Cube ham steak and layer on top of onions.
*Note, if you are halfing this recipe to use as a side dish, use 1/2 package bacon. Cut into squares about 2 inches long. Fry, bring sure to drain well, blot with paper towel to remove excess grease. Add to pan over onion.
5In bowl, mix cream of mushroom soup, salt and milk until it is slightly thin. Grind pepper and mix well. Remember that the ham will add saltiness while baking, so allow it to remain somewhat flat.
6Pour over potatoes and mix well, making sure all ingredients are evenly mixed. Cover with pan lid, or tin foil.
7Bake covered for one hour, or until potatoes and onions are cooked through.