Mashed Potato Meat Loaf

1-1/3 cups water
1/3 cup milk
2 tablespoons butter
1-1/2 teaspoons salt, divided
1-1/3 cups mashed potato flakes
1 egg, lightly beaten
1/2 cup quick-cooking oats
1/2 cup chopped green pepper
1/3 cup chopped onion
3/4 teaspoon pepper
1 pound lean ground beef
1 can (11-1/2 ounces) picante V8 juice
1/4 cup ketchup

In a large saucepan, bring water, milk, butter and 1/2 teaspoon salt to a boil. Remove from the heat; stir in potato flakes. Let stand for 30 seconds. Fluff with a fork; set aside.
In a large 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-in. x 8-in. rectangle. Spoon mashed potatoes lengthwise down the center third to within 1 in. of edges. Bring long sides over potatoes to meet in center; seal seam and edges.
Place seam side up in a greased 13-in. x 9-in. baking dish. Bake, uncovered, at 350° for 30 minutes; drain. Pour V8 juice over loaf. Top with ketchup. Bake 18-22 minutes longer or until meat is no longer pink and a meat thermometer reads 160°. Let stand for 5 minutes before slicing. Yield: 4-6 servings.