Cook potatoes in boiling water to cover 30 minutes or until tender. Drain. Let cool to touch. Peel and cut into 1/4" strips. Set aside. Combine 1/4 cup margarine or butter and next 5 ingredients in large bowl. Gently stir in potatoes and cheese. Spoon into a lightly greased baking dish, 13x9x2. Combine 3 tbsp butter or margarine and stuffing mix. Sprinkle over potato mixture.
Bake uncovered at 350F for 25 minutes or until thoroughly heated.