Squash Casserole

Ingredients

• 2 lb. yellow squash in 1/4-inch slices
• 1/2 c. water
• 1/2 tsp. salt
• 1 c. chopped onion
• 1 c. chopped red pepper
• 1/4 c. melted butter
• 1 beaten egg
• 1 c. shredded Cheddar cheese
• 1 can water chestnuts, sliced and drained
• 2/3 c. mayonnaise
• 2 tsp. sugar
• 1/4 tsp. black pepper