2 c. water
2 c. diced potatoes
1/2 c. diced carrots
1/2 c. celery
1/4 c. onion
1 tsp. salt
1/4 tsp. pepper
1/4 c. butter
1/4 c. flour
2 c. milk
2 c. grated cheddar cheese
1 c. cubed ham

Combine water, potatoes, carrots, celery, onion, salt and pepper in large kettle. Boil for 10 - 12 minutes.

Meanwhile in small saucepan, make white sauce by melting the butter; add flour and stir until smooth (about 1 minute). Slowly add milk; cook until thickened. Add the cheese to white sauce; stir until melted. Add white sauce and cubed ham to veggies that HAVE NOT BEEN DRAINED. Heat through.