Chunky Potato Soup

3 med potatoes (red or gold)
2 cups water
1 small onion, peeled and finely chopped
3 T butter
3 T flour
crushed red pepper flakes
salt and pepper, to taste
3 cups milk
1/2 tsp sugar
1 cup shredded cheddar cheese
1 cup cubed cooked ham

1. Boil potatoes until tender. Drain and reserve 1 cup cooking liquid, adding water if necessary; set aside.

2. Saute onion in butter until translucent and tender.

3.Add flour to saucepan; season with red pepper flakes, salt, and pepper to taste. cook 3 to 4 min.

4.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.

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