Chunky Potato Soup

Chunky Potato Soup
3 medium red potatoes
2 cups water
1 small yellow onion
3 Tablespoons butter
3 Tablespoons all-purpose flour
Ground black pepper
3 cups milk
½ teaspoon sugar
1 cup shredded cheddar cheese
1 cup cubed cooked ham
1 can drained corn (OPTIONAL)

Peel Potatoes and cut into 1 inch cubes

Bring water to a boil in a 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 to taste. Cook 3-4 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. Add corn (OPTIONAL). Continue until corn is warmed by the soup. Store leftovers, covered, in refrigerator for up to 3 days.