- 2 cups water
- 2 cups peeled and cubed red potatoes
- 3 tablespoons melted butter
- 1 small onion, chopped
- 3 tablespoons all-purpose flour
- salt and pepper to taste
- 3 cups milk
- 1/2 teaspoon white sugar
- 1 cup shredded Cheddar cheese
- 1 cup diced ham
Using a medium sized stock pot bring water to a boil, add potatoes and cook until tender. Drain reserving 1 cup liquid.
Stir in butter, onion and flour. Season with salt and pepper. Gradually stir in potatoes, reserved liquid, milk, sugar, cheese, and ham. Simmer for 30 minutes, stirring frequently.