Chunky Potato Soup

3 medium red potatoes
2 cups water
1 small onion
3 tablespoons butter
3 tablespoons all-purpose flour
Crushed red pepper flakes
Ground black pepper
3 cups milk
1/2 teaspoon sugar
1 cup shredded Cheddar cheese
1 cup cubed 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 liquid. Set aside potatoes. Measure 1 cup
cooking liquid, adding water, if necessary; set aside.

Peel and finely chop onion. Melt butter in saucepan over medium heat.
Add onion to saucepan; cook, stirring frequently; until onion is
translucent and tender, but not brown.

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

Gradually add potatoes, reserved 1 cup cooking liquid, milk and
sugar to
onion mixture in saucepan; stir well. Add cheese and ham. Simmer over
low heat 30 minutes, stirring frequently. Store leftovers covered, in
refrigerator.

Maybe served with bread or in a bread bowl by hollowing out 1-1/2
inches
of a small round of bread.

Serves 12