Summer Squash Casserole

1 lb. yellow summer squash, chopped
¼ cup water
¼ cup chopped onion
½ tsp. Salt
1 egg, beaten
¼ cup dry bread crumbs
2 tbsp. melted butter
Pepper to taste
½ cup shredded cheddar cheese

Combine first 4 ingredients in saucepan. Bring to boil, reduce heat, cover and simmer 15 minutes or until tender. Cool. Stir in egg, bread crumbs, butter and pepper. Transfer to 1 quart baking dish. Sprinkle with cheese. Bake uncovered at 350º F for 30 minutes.