Ingredients

• 2 c. water
• 2 c. potatoes, peeled and cubed
• 3 Tbsp. butter or margarine
• 1 small onion, chopped
• 3 Tbsp. all-purpose flour
• Black pepper to taste
• 3 c. low-fat milk (or 1 c. nonfat dry milk + 3 c. water)
• ½ tsp. sugar
• 1 c. cheddar cheese, shredded
• 1 c. (8-oz.) cooked ham, cubed

Directions

Bring water to boil in large saucepan. Add potatoes and cook until tender. Drain, reserving liquid (you should have 1 c.; add water if necessary). Melt butter in saucepan over medium heat. Add onion; cook and stir until tender, but not brown. Add flour; season with black pepper. Cook three to four minutes. Gradually add potatoes, reserved liquid, milk and sugar to onion mixture; stir well. Add cheese and ham. Simmer over low heat 30 minutes, stirring frequently.

Makes 10 servings.