Step 1

Heat oven to 350°F. Spray 2-quart casserole with cooking spray.

Step 2

In 2-quart saucepan, melt 3 tablespoons of the butter over medium heat. Cook onion in butter about 2 minutes, stirring occasionally, until tender. Stir in flour, salt and pepper. Cook, stirring constantly, until smooth and bubbly; remove from heat. Stir in milk. Heat to boiling, stirring constantly. Boil and stir 1 minute.

Step 3

Mix potatoes and ham in casserole; gently press down so surface is even. Pour sauce over potato mixture. Cut remaining 1 tablespoon butter into small pieces; sprinkle over potatoes.

Step 4

Cover and bake 30 minutes. Uncover and bake 1 hour to 1 hour 10 minutes longer or until potatoes are tender. Let stand 5 to 10 minutes before serving (sauce thickens as it stands).