Yummy Chunky Potato Soup - cooking recipe

Ingredients

6 -8 medium red potatoes
2 cups water
1 small onion, chopped
1 cup mushroom, sliced
1/2 cup chopped celery
1/4 cup bacon or 1/4 cup bacon bits (optional)
3 tablespoons butter or 3 tablespoons margarine
3 tablespoons flour
3 cups milk
1/2 teaspoon sugar
1 cup shredded cheddar cheese
2 cups cubed cooked ham
ground black pepper
crushed red pepper flakes

Preparation

Peel Potatoes and cut into 1 inch cubes.
Boil in water until done, about 15 minutes.
Drain & Set aside, but save 1 Cup of the cooking liquid for later.
Melt butter in a large saucepan over medium heat.
Add onion, celery, and mushrooms, stirring frequently until onion is soft and translucent.
Add flour, bacon, red and black pepper to saucepan.
Mix well, cook 3- 4 minutes.
Slowly add potatoes, reserved cup of liquid, milk, and sugar.
Stir well.
Add cheese and ham.
Simmer over low heat 30 minutes, stirring frequently.