Potato And Cheddar Soup - cooking recipe

Ingredients

2 c. water
2 c. red potatoes, peeled and cubed
3 Tbsp. butter or margarine
1 small onion, finely chopped
3 Tbsp. flour
3 c. milk
1/2 tsp. sugar
1 c. shredded Cheddar cheese
1 c. cubed, cooked ham

Preparation

Bring water to a boil in large saucepan.
Add potatoes and cook until tender.
Drain, reserving liquid.
Measure 1 cup, adding water, if necessary.