Cheddar Ham Soup

2 cups diced peeled potatoes
½ cup sliced carrots
¼ cup butter, cubed
2 cups milk
¼ teaspoon pepper
1 ½ cups cubed, fully cooked ham
2 cups water
¼ cup chopped onion
¼ cup flour
¼ teaspoon salt
2 cups shredded cheddar cheese
1 cup frozen peas, thawed

In a large saucepan, combine the potatoes, water, carrots, and onions. Bring to a boil. Reduce heat; cover and cook for 10-15 minutes or until tender. Meanwhile, in another saucepan, melt butter. Stir in flour until smooth. Gradually add the milk, salt, and pepper. Bring to a boil; cook and stir for 2 minutes or until thickened. Stir in cheese until melted. Stir into un-drained potato mixture. Add ham and peas; heat through. -Barbie Squires