1. Leave crust on bread, only removing any burnt crust.
2. Cut bread and cheese into thin slices and place in a bowl.
3. Heat milk and water together until scalding hot but not boiling, and pour over bread and cheese.
4. Allow to stand for 30 minutes, until liquid is absorbed. Stir now and then.
5. Melt butter in a large frying pan and saute onion for 5 minutes.
6. Add bread and cheese mixture and fry on a low heat, turning continually, until golden brown.
7. Season with freshly ground pepper and serve as a luncheon or light supper dish.