CHUNKY POTATO SOUP

3 medium Red Potatoes
2 Cups Water
1 small Onion
3 tsp. Sugar
1 Cup shredded Cheddar Cheese
1 Cup cubed Cooked Ham

Peal potatoes and cut into 1 inch cubes.

Bring water to boil in large saucepan, add potatoes and cook until tender.

Drain, reserving liquid. Measure 1 cup of reserved liquid...adding water if necessary to make 1 cup.

Peel and finely chop onion.

Melt butter over medium heat in saucepan. Add onion. Cook, stirring frequently, until onion is translucent and tender.

Add flour to saucepan, season with pepper flakes and black pepper to taste. Cook 3 to 4 minutes.

Gradually add potatoes, 1 cup of reserved liquid, milk and sugar. Stir well.

Add cheese and ham.

Simmer over low heat 30 minutes, stirring frequently.