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Peas with Sour Cream and Mayonnaise

I had this on a salad bar once (it was a German restaurant) and I knew I would be making it at home from then on.

1 green onion, chopped
1/2 pkg (about 2 cups) frozen peas
1/2 cup mayonnaise
1/2 cup sour cream
2 Tbs milk
1 Tbs sugar
1/2 tsp salt
1/2 tsp dried tarragon
*optional 1/2 cup water chestnuts, sliced and drained

Whisk mayonnaise, sour cream, milk, sugar, salt, and tarragon together. Pour over peas and onion and fold to cover. Cover and let set overnight in the refrigerator.

Serve cold.