Step 1

Heat oven to 375 degrees F (190 degrees C).

Step 2

Place potatoes into a buttered 5-inch baking dish or a baking dish of similar size. Set aside

Step 3

Melt butter over medium heat in a 1-quart saucepan. Stir in flour and cook, stirring constantly for 2 minutes.

Step 4

Slowly stir in milk. Cook, stirring frequently until mixture is smooth and has thickened, 2 minutes.

Step 5

Stir in ½ cup cheese, salt, and pepper and continue stirring until cheese has melted.

Step 6

Pour over potatoes; place dish on a baking sheet and bake for 25 minutes.

Step 7

Remove from oven and top with 2 tablespoons shredded Cheddar cheese; return to oven and bake for an additional 20 minutes, until cheese has melted.