*Cook potatoes until tender. Drain, reserving one cup water. Set potatoes and water aside. Melt butter in a saucepan over medium heat. Add onion and stir until tender, but not brown. Add flour, salt and pepper to onion, cook 3-4 minutes. Gradually add potatoes, reserved water and milk to onion mixture. Blend in cheese and bacon/ham. Simmer on low heat for 30 minutes, stirring frequently. Enjoy!