1. In a large saucepan, combine potatoes, water, carrots, onion. Bring to a boil. Reduce heat, cover and cook for 10-15 min or until tender.
2. Meanwhile in another saucepan, melt butter. Stir in flour until smooth. Gradually add the milk, salt, pepper. Bring to a boil, cook and stir for 2 minutes or until thickened. Stir in cheese until melted. Stir into the undrained potato mixture. Add ham and peas. Enjoy!