Chunky Potato Soup

3 medium red potatoes
2 c water
1 small onion, chopped
3 tbls butter
3 tbls flour
crushed red pepper flakes
pepper
3 c milk
1/2 tsp sugar
1 c shredded cheddar
1 c 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 1 cup liquid (add water to make 1 cup if necessary).

Cook onion in melted butter, stirring frequently. Cook until it's translucent and tender, but not brown. Add flour to saucepan, season with peppers and cook 3-4 minutes.

Mix with potatoes, water, milk and sugar. Stir well and add cheese and ham. Simmer 30 minutes, stirring frequently.

NOTES: We all liked this a lot. I added more potatoes than called for and t made enough for 5 generous servings. I used a 3 ounce package of Oscar Mayer Real Bacon Bits instead of the ham (it was plenty and added a great flavor and texture).

SOURCE: The original recipe came from some freebie recipe card I got in the mail.

Too bad - I forgot to take a picture and it was soon gone!

This is not my soup, but thanks to Pfaltzgraff for the picture.