2 c. water
2 c. diced potatoes
1/2 c. diced carrots
1/2 c. diced celery
1/4 c. chopped onion
1 tsp. salt
1/4 tsp. pepper
1 c. cubed ham

WHITE SAUCE:

1/4 c. butter
1/4 c. flour
2 c. milk
2 c. Cheddar cheese

Combine water, vegetables and seasoning in large kettle. Boil 10 to 12 minutes. Meanwhile, in small saucepan, make White Sauce by melting butter; add flour and stir until smooth. Slowly add milk and cook until it thickens. Add cheese to White Sauce; stir until melted. Add White Sauce and ham to vegetables that have not been drained. Heat through.