Broccoli Potato Soup

2 cups broccoli florets
1 small onion, thinly sliced
1 tablespoon butter or margarine
1 can (10-3/4 ounces) condensed cream of potato soup, undiluted
1 cup milk
1/2 cup water
3/4 teaspoon minced fresh basil or 1/4 teaspoon dried basil
1/4 teaspoon pepper
1/3 cup shredded cheddar cheese

In a large saucepan, saute broccoli and onion in butter until tender. Stir in soup, milk, water, basil and pepper; heat through. Add cheese; stir until melted. Makes 4 servings.