Potato and Cheddar Soup

2 cups water
2 cups peeled and cubed red potatoes
3 Tbsp melted butter
1 small onion, chopped
3 Tbsp flour
salt and pepper to taste
3 cups milk
1/2 tsp sugar
1 cup shredded Cheddar cheese
1 cup diced ham

Using a medium sized stock pot bring water to a boil, add potatoes and cook until tender. Drain reserving 1 cup liquid. Stir together butter, onion, and flour. Season with salt and pepper. Gradually stir in potatoes, reserved liquid, milk, sugar, cheese, and ham. Simmer for 30 minutes, stirring frequently.

Cooking Club: Thaw and heat on stove until warm.