In a saucepan, combine corn, onion, & water. Bring to a boil & then reduce heat.

Cover & simmer about 15 minutes, stirring occasionally. Stir in 3¹/² cups of the milk,margarine, salt, & pepper.

Place the flour in a bowl; slowly add the remaining ¹/² cup of milk to the flour, stirring until smooth.

Add to the corn mixture. Cook until thickened & bubbly. Lightly beat the egg in a separate bowl & then gradually stir about 1 cup of the hot mixture into the egg.

Return the heated egg mixture to the saucepan. Cook over low heat for 2 minutes more,stirring constantly. DO NOT BOIL.

Then serve and enjoy!