Step 1

In a large saucepan, combine the potatoes, water, carrot and onion. Bring to a boil. Reduce heat; cover and cook until tender, 10-15 minutes.

Step 2

Meanwhile, in another saucepan, melt butter. Stir in flour until smooth. Gradually stir in milk; add salt and pepper. Bring to a boil; cook and stir until thickened, about 2 minutes. Stir in cheese until melted. Stir into undrained potato mixture. Add ham and peas; heat through.