White Cheddar Scalloped Potatoes

Oh this is so good. Whenever I bake a ham I save all the little pieces that come off around the bone and freeze them to make this dish with. The white cheddar is a little expensive, but it's so worth it! -Sarah

1 medium onion, finely chopped
1/4 cup butter
1/4 cup flour
1 t. salt
1/2 t. pepper
1/2 t. crushed thyme
3 cups milk
1 can cream of mushroom soup
1 cup sour cream
8 cups thinly sliced, peeled potatoes
3 1/2 cups cubed ham
8 oz. shredded white cheddar

• Saute onion in butter till tender. Stir in flour, salt, pepper and thyme till blended. Gradually add milk, bring to a boil. Cook and stir till thickened. Stir in soup. Remove from heat and stir in sour cream.
• Combine potatoes and ham.
• In a greased 9x13 pan layer half of the potato mixture, half the shredded cheese, and half the white sauce.
• Repeat layers.
• Cover and bake at 375 degrees for 30 minutes. Uncover and bake 50 more minutes, till potatoes in the middle are tender.