Step 1: Preheat oven to 350°. Butter a 13x9 baking dish.
Step 2: Cut squash and zucchini into 1/4-inch-thick slices and put in a Dutch oven or pot to fit. Add chopped onion, 2 tsp. salt, and water to cover. Bring to a boil over medium-high heat, and cook 5 minutes; drain well.
Step 3: In a large bowl, stir together the grated carrots, soup, sour cream, water chestnuts, and the remaining 1/2 tsp. salt. Gently fold in the squash mixture.
Step 4: Stir together stuffing and 1/2 cup melted butter, and spoon half of stuffing mixture in the bottom of the baking dish. Spoon the squash mixture over stuffing, then top with remaining stuffing.
Step 5: Bake for 30 to 35 minutes or until bubbly and golden brown. Cover with aluminum foil after 20 to 25 minutes if it begins to get too brown. Let stand 10 minutes before serving.
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