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Creamy New Potato Gratin

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Ingredients

2 pounds small new potatoes, cut into 1/4-inch-thick slices

1 cup water

1/4 cup butter or margarine, divided

1 sweet onion, chopped

2 cups milk

1 (2.64-ounce) package McCORMICK Original Country gravy mix

1 (8-ounce) package shredded cheddar-American cheese blend

1 cup fine, dry breadcrumbs

2 teaspoons dried parsley flakes

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