In a large saucepan, combine the first 6 ingredients. Bring to a boil. Reduce heat; cover and simmer for 12-14 minutes or until vegetables are tender., Meanwhile, in another saucepan, melt butter. Stir in flour and nutmeg until smooth. Gradually add milk. Bring to a boil; cook and stir for 2 minutes or until thickened. Stir into vegetable mixture; heat through. Sprinkle with cheese.