6 med. potatoes
1 med. onion, chopped
1/2 green pepper, chopped fine
2 tsp. salt
4 tbsp. butter
1/2 c. flour
3 1/2 c. milk
1 1/4 tsp. salt
1/8 tsp. black pepper
3-4 c. cubed ham
1 1/2 c. grated Cheddar cheese

Peel potatoes and cut into bite-size pieces. In saucepan, mix potatoes with onion, green peppers and 2 teaspoons salt. Cover with water and bring to a boil. Turn off heat and let sit for 5 minutes. Drain potato mixture and spread it in a 9 x 13 inch pan.

Make white sauce by melting butter in a saucepan and stir in flour to make a paste. Gradually add milk, salt and pepper. Stir and cook until thickened. Mix in ham and 3/4 cup cheese. Pour this mixture over potatoes and top with remaining cheese. Bake at 350 degrees for 35 minutes.