Heat oven to 350°F. Grease 13x9-inch (3-quart) baking dish or pan. In large bowl, combine cheese, salsa, onion, sour cream, soup and pepper; mix well. Add potatoes; mix well. Spread in greased dish.
In small bowl, combine bread crumbs and butter; mix well. Sprinkle over potatoes.
Bake at 350°F. for 45 to 60 minutes or until cheese is melted and potatoes are tender.