The steps for succesfully using an analogue LM35 temp sensor:
- Give the LM35 it's own (not shared) ground to the Uno.
- Switch default analogreference to the internal reference of the Uno, for a supply independent temp readout and a 5x higher resolution (to 0.1C instead of 0.5C).
A digital temp sensor, like the DS18B20 is a much easier solution.
Leo..