Potato Cheddar Soup

2 cups water
2 cups peeled potato cubes
3 tablespoons butter/margarine
1 small onion, chopped
1 cup shredded cheddar cheese
3 tablespoons all purpose flour
Red and black pepper to taste
3 cups milk (whipping cream)
1/2 teaspoon sugar
1 cup cooked ham (1 cup steamed broccoli or bacon)

Bring water to boil in large saucepan. Add potatoes and cook until tender. Drain and reserve liquid. Measure 1 cup of reserved liquid, adding water if necessary. Melt butter in another saucepan over medium heat. Add onion, cook and stir until tender but not brown. Add flour and season with pepper. Cook 3-4 minutes gradually add potatoes, reserved liquid, milk, and sugar to onion mixture and stir well. Add cheese and ham, simmer over low heat 30 minutes, stirring frequently.

-Make sure to use whisk