Scalloped Potatoes and Ham - Spend With Pennies

"This scalloped potatoes and ham recipe is a filling, family-pleasing dish that will help you use up any leftover ham. It's a seriously good side dish!..."

1/3 cup butter
1 small onion (diced)
1/3 cup flour
1/2 teaspoon thyme
3 cups milk
1/2 cup chicken broth
3 pounds white potatoes (sliced about 1/8 inch thick)
salt and pepper to taste
2 cups cooked ham (diced)
1 cup sharp cheddar cheese (optional)
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