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1. Preheat oven to 350 degrees F. Grease a 2-quart casserole; set aside. Halve potatoes lengthwise. Place potato halves in colander. Rinse with cold water; drain.For sauce::
2. In a medium 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; stir in snipped sage.
3. Layer half of the potatoes in a greased 2-quart casserole. Top with half the sauce. Sprinkle with half of the cheese. Repeat layering with potatoes and sauce. (Cover and chill remaining cheese until needed.)
4. Cover and bake for 40 minutes. Uncover and bake about 25 minutes more or just until potatoes are tender. Sprinkle with remaining cheese; top with walnuts. Bake, uncovered, for 5 minutes more. Let stand for 10 minutes before serving. If desired, garnish with sage leaves. Makes 10 to 12 servings.