1/2 cup chopped sweet red pepper
1/2 cup chopped onion
2 tablespoons butter or margarine
1 (10.75 ounce) can condensed cream of celery soup, undiluted
1/4 cup milk
1 (4 ounce) can chopped green chilies
1/4 teaspoon salt
1/8 teaspoon cayenne pepper
1/8 teaspoon hot pepper sauce
1 cup shredded Cheddar cheese, divided
8 medium cubed cooked red potatoes