1/4 cup butter or margarine

1 tablespoon flour

alt and pepper to taste

2 cups milk

2 pounds potatoes prepared and sliced

1 (2-ounce) jar bacon bits

1 cup shredded Cheddar cheese

1/2 cup buttered bread crumbs

Melt butter in saucepan. Stir in flour, salt, and pepper. Cook over low heat, stirring constantly until mixture is bubbly; remove from heat. Stir in milk. Heat to boiling, stirring constantly. Boil and stir 1 minute. In 1 1/2- to 2-quart casserole, layer half of potatoes, half of bacon pieces, and 1/4 cup cheese. Repeat layers. Pour sauce over potatoes. Bake at 350°F 45 minutes. Sprinkle with remaining cheese and buttered bread crumbs. Bake an additional 15 minutes.