Spinach Bisque

1/2 cup chopped onion
2 tablespoons butter or margarine
1/3 cup all-purpose flour
1/2 to 1 teaspoon salt
1/8 teaspoon ground nutmeg
2-1/2 cups milk
1 cup water
3/4 cup cubed process American cheese
1 package (10 ounces) frozen chopped spinach, thawed and drained
Oyster crackers, optional

In a 3-qt. saucepan, saute onion in butter until tender. Stir in the flour, salt and nutmeg until smooth. Gradually whisk in milk and water.

Add cheese; cook and stir over medium heat until melted. Add spinach; cover and simmer for 4-5 minutes or until heated through. Serve with oyster crackers if desired. Makes 5-6 servings.