Heartwarming Chunky Potato Soup

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Peel potatoes and cut into 1-inch cubes.
Bring water to a boil in a large saucepan.
Add potatoes and cook until tender. Drain, reserving liquid. Set aside potatoes.
Measure 1 cup of cooking liquid, adding water if necessary, then set aside.
Peel and finely chop onion.
Melt butter in saucepan over medium heat.
Add onion to saucepan; cook, stirring frequently, until onion is translucent and tender but not brown.
Add flour to saucepan; season with pepper flakes and black pepper to taste. Cook for 3-4 minutes.
Gradually add potatoes, reserved 1 cup of cooking liquid, milk, and sugar to onion mixture in saucepan; stir well.
Add cheese and ham.
Simmer over low heat for 30 minutes, stirring frequently.
Store leftovers, covered, in the refrigerator.
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To make this a filling meal, Grandma usually served this soup with fresh bread. For a slightly different twist, serve in individual bread bowls. To make them, buy small round loaves of a hearty bread, such as Italian, and slice off a small piece from the top. Then remove the inside of the loaf, leaving a 1 ½-inch shell. Fill with hot soup.</span-p>