Cheesy Ham and Potato Soup

INGREDIENTS

• 3 1/2 cups potatoes, peeled and diced (I keep mine with the peel)
• 1/3 cup celery, diced
• 1/3 cup onion, finely chopped
• 1 -2 cup ham, diced and cooked
• 3 1/4 cups water or 3 1/4 cups chicken broth
• 2 tablespoons chicken bouillon granules (omit if using chicken broth)
• salt (to taste)
• 1 teaspoon pepper
• 5 tablespoons butter
• 5 tablespoons flour
• 2 cups milk
• 2 cups cheddar cheese, shredded