Summer Squash Casserole with Bacon

Preheat the oven to 400 degrees F (200 degrees C). Butter a 9x13-inch baking dish.

Heat 1 tablespoon butter and oil in a skillet over medium heat. Add squash, diced onion, thyme, and garlic. Cook, stirring frequently, until squash is tender, about 5 minutes. Cook, covered, until squash juices are released, about 2 minutes. Uncover and continue to cook until juices evaporate, 3 to 5 minutes more. Drain squash mixture into a bowl.

Mix remaining butter with crushed crackers, Cheddar cheese, French-fried onions, salt, and pepper. Reserve 1 cup of the mixture; stir the rest into the squash mixture. Add bacon and stir well.

Mix milk and eggs together in a small bowl and add to the squash mixture. Mix well. Spread into the prepared baking dish. Sprinkle reserved portion of the cracker mixture on top of casserole.

Bake in the preheated oven until lightly browned, about 25 minutes.