3 medium red potatoes
2 c. water
1 small onion, finely chopped
3 tbsp. butter
3 tbsp. flour
crushed red pepper flakes
ground black pepper
3 c. milk
1/2 tsp. sugar
1 c. shredded cheddar cheese
1 c. cubed cooked ham

Peel potatoes and cut into 1 inch cubes. Bring water to a boil in large saucepan. Add potatoes and cook until tender. Drain, reserving liquid. Measure 1 cup cooking liquid, adding water if necessary, and set aside.

Melt butter in saucepan over medium heat. Add onion and cook, stirring frequently, until onion is translucent and tender, but not brown. Add flour to saucepan, season with pepper flakes and black pepper and cook 3 to 4 minutes. Gradually add potatoes, reserved 1 c. cooking liquid, milk and sugar to onion mixture and stir well. Add cheese and ham and simmer over low heat about 30 minutes, stirring frequently.