Au Gratin Potatoes

1 to 1 1/2 lb. Baking Potatoes
2 Tbsp. butter
2 Tbsp. flour
1 small shallot, minced
1 1/2 c shredded cheddar cheese
1 tsp. salt
1 c milk
pepper to taste

Boil potatoes until tender. In small saucepan, saute shallots in melted butter until soft. Add flour and salt and pepper. Stir over low heat until mixture thickens. Add milk slowly, stirring continuously until it has thickened. Add cheese, stirring until it has melted. Drain cooked potatoes and place in baking dish. Pour cheese sauce over potatoes and bake at 350 degrees for 20-30 minutes or until golden and bubbly.