Ham & Cheese Chowder

3 cups water
4 cups potatoes, diced
1 cup celery
1 cup carrots, sliced
1 ¼ cup onions, diced
2 tsp. Salt
¼ tsp. pepper
½ cup butter
½ cup flour
1 quart milk
4 cups sharp cheddar, cubed or shredded
2 cups ham, cooked or cubed

Cook all veggies together in water until tender. Make cheese sauce. Add to veggies (Do not drain.). Add ham and heat, but do not boil.