2 cups water 
2 cups diced potatoes 
1/2 cup diced carrots 
1/2 cup diced celery 
1/4 cup diced onion 
l tsp. salt 
l/4 tsp. pepper

     Combine the vegetables, water, salt and pepper in
a large kettle. Boil 10-12 minutes. Do not Drain.

     Meanwhile, make white sauce:
White sauce--
 l/4 cup butter or margarine
 1/4 cup flour
 2 cups milk
 2 cups cheddar cheese,grated

 1 cup cubed ham

Melt the butter in a saucepan: add flour and stir until smooth
(about l minute). Slowly add the milk; cook until
thickened,stirring constantly.
Add the cheese; stir until melted, and sauce is smooth. Stir the
sauce into the undrained vegetables; then add the ham. Heat
through and
serve.
Serves 6.