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1) Heat oven to 400ºF. In saucepot, bring first 2 ingredients to a boil. Lower heat; simmer 10 minutes. Drain; reserve liquid. Layer potatoes in dish.
2) In pot, melt butter; whisk in flour and reserved liquid. Bring to a boil; cook 1 minute more. Add cheese.
3) Pour mixture over potatoes; top with last 5 ingredients. Cover; bake 45 minutes. (Uncover after 35 minutes)
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