Spinach Bisque

1/2 C. chopped onion
2 T. butter or oleo
1/3 c. flour
1 tsp. salt
1/8 tsp. nutmet
2-1/2 c. milk
1 c. water
3/4 c. grated Am. cheese
1 pkg. (10 oz.) chopped spinach, thawed and drained

In a 3 qt. saucepan, saute onion in butter until ?????., stir in flour, salt & nutmeg until smooth.  Gradually whisking in milk & water.  Add cheese; cook & stir over medium heat until melted.  Add spinach.  Cover & simmer 4-5 minutes or until heated through.  Serve with oyster crackers if desired.