Cheesy Ham and Potato Soup

This is a great way to use up leftover ham after the holidays.

3 1/2 cups potatoes, peeled and diced
1/3 cup celery
1/3 cup onion, finely chopped
1-2 cups ham, diced and cooked
3 1/4 cups water
2 T. chicken bouillon granules I use a can of chicken broth instead of chicken bouillon
1/2 tsp. salt
1 tsp. pepper
5 T. butter
5 T. flour
2 cups milk
2 cups cheddar cheese, shredded
I also add 2-3 carrots, sliced.
Combine potatoes, celery, onion, ham and water (I added the chicken broth here, and then enough water to cover the potatoes, etc.) in stockpot and bring to boil. Cook over medium heat until potatoes are tender. Salt and pepper to taste.
In separate saucepan, melt butter over medium-low heat. Whisk in flour and cook, stirring constantly until thick. Slowly stir in milk as not to allow lumps to form and all milk is added. Continue to stir until thick (4-5 minutes). Add in cheese and stir until melted.
Stir the cheese mixture into the stockpot and cook until heated through.