Mashed Potato Meatloaf

1 1/3 c. water
1/3 c. milk
2 T. butter or margarine
1 1/2 t. salt, divided
1 1/3 c. mashed potato flakes
1 egg, beaten
1/2 c. quick-cooking oats
1/2 c. chopped green pepper
1/3 c. chopped onion
3/4 t. pepper
1 lb. ground beef
1/3 c. ketchup

In a saucepan, bring water, milk, butter and 1/2 t. salt to a boil.  Remove from the heat, stir in potato flakes.  Let stand for 30 seconds.  Fluff with a fork and set aside.  In a bowl, combine the egg, oats, green pepper, onion, pepper and remaining salt.  Crumble beef over mixture and mix well.  On a piece of waxed paper, pat beef mixture into a 12"x8" rectangle.  Spoon mashed potatoes lengthwise down the center third to within 1 inch of edges.

Bring long sides over potatoes to meet in center.  Seal seam and edges.  Place seam side up in a greased 9x13 baking dish.  Bake, uncovered, at 350 degrees for 30 minutes.  Top with ketchup.  Bake 18-20 minutes longer or until meat is no longer pink and a meat thermometer reads 160 degrees.  Let stand 5 minutes before slicing.