Preheat oven to 350°. Heat skillet to medium-high. Add water and squash, cover skillet. Bring to a good steam, about 8 minutes. Drain when the squash is tender.
Transfer squash to mixing bowl. Add all other ingredients, reserving ½ cup cheese and ¼ cup crackers. Transfer to a 1.5 quart baking dish. Smooth out mixture and sprinkle remaining cheese and crackers on top.
Bake 35 minutes.
Recipe by Undra Jeter, Campobello