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8 ounces lasagna noodles, cooked and drained
1/2 cup chopped onion
1/2 cup chopped green pepper
3 tablespoons butter or margarine
1 teaspoon basil
16 ounces cottage cheese
1 can cream of chicken soup
1 (6 ounce) can sliced mushrooms, drained
1/2 cup milk
2 cups cooked, diced chicken
2 cups shredded American cheese
1/2 cup grated Parmesan cheese
Sauté onion and green pepper in butter till tender. Stir in soup, mushrooms, milk and basil. Heat through. Arrange 1/2 of the noodles in a 9 x 13-inch pan. Top with 1/2 of each of the sauce, cottage cheese, American and Parmesan cheese. Repeat noodles, sauce, cottage cheese and chicken. Bake at 350 degrees F for 60 minutes.
Top with remaining American and Parmesan cheeses and bake for 3 minutes longer or until cheese on top melts. Let stand 15 minutes before serving.