Unbelievable Squash Casserole

2 teaspoons vegetable oil

3 crookneck yellow squash, diced

½ sweet yellow onion, diced

2 tablespoons water, or as needed

1 (10.75 ounce) can condensed cream of chicken soup

1 (8 ounce) container sour cream

½ cup shredded Cheddar cheese

½ (6 ounce) box dry bread stuffing mix

Preheat oven to 350 degrees F (175 degrees C). Grease a baking dish.

Heat oil in a skillet over medium heat; cook and stir squash and onion until tender, 8 to 10 minutes. Add water and simmer to soften squash, 2 to 4 minutes. Stir cream of chicken soup, sour cream, and Cheddar cheese into squash mixture; mix well.

Transfer squash mixture to the prepared baking dish; top with stuffing mix.

Bake in the preheated oven until cheese is bubbling and stuffing is browned, about 30 minutes.