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1. Preheat oven to 350 degrees F. Cook potatoes in lightly salted boiling water for 5 minutes. Drain; set aside.
2. For sauce, in a saucepan cook onion and garlic in hot oil over medium heat until tender. Stir in flour, salt, and pepper. Add milk all at once. Cook and stir until thickened and bubbly. Remove from heat.
3. In a greased 2-1/2- to 3-quart au gratin or rectangular baking dish or two 1-1/2-quart au gratin dishes layer half the potatoes. Pour half the sauce over potatoes. Sprinkle with 1/2 cup cheese. Repeat with remaining potatoes and sauce. Cover and refrigerate remaining cheese. Cover gratin and refigerate overnight.
4. Bake, covered, for 50 minutes for large dish, and 40 minutes for small dishes. Uncover; top with remaining cheese. Bake 40 to 50 minutes more or until potatoes are tender and top is golden. Let stand 10 minutes before serving. Makes 8 side-dish servings.