In saucepan, melt butter over medium high heat. Add flour and stir into butter. Let cook and brown slightly, forming a thick roux. Stir in sour cream, green chiles, salt and pepper. Let thicken to the consistency of thick gravy (add a milk 1 T. at a time if you need to thin it a bit). Remove from heat and add most of the cheese; set aside. Slice unpeeled potatoes into 1/4" thick slices. Place one layer in small casserole, and pour half the cheese sauce over; layer again and pour again. Bake at 350 degrees for 45 min. - 1 hr. Top with whats left of the cheese and bake an addition 15 min. Karen Baldwin, Intergraph CHILE-HEADS ARCHIVES From the Chile-Heads recipe list. Downloaded from Glens MM Recipe Archive, G Internet.