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Step 1
Preheat oven to 350 degree F and grease a 13"x9" baking pan with cooking spray.
Step 2
Bring a large pot of water to a boil. Scrub potatoes and place them, whole, into the boiling water. Cook for about 20 minutes. Remove from the water and let sit until cool enough to handle.
Step 3
Meanwhile, make the cheese sauce. Melt butter in a medium saucepan over medium heat. Whisk in flour and cook, whisking constantly, until flour is golden brown; about 2 minutes. Stir in milk and cook, stirring often, until thickened; about 2-3 minutes. Remove from heat and stir in shredded cheese. Season with salt and pepper. If the sauce seems too thick, you can stir in up to 1/4 of a cup of milk.
Step 4
Gently peel potatoes and slice into 1/8 inch rounds. Place 1/3 of the potatoes overlapping in a single layer in the baking dish, seasoning with salt and pepper. Top with about half of the ham. Spoon about 1/3 of the cheese sauce on top of the potatoes and ham.
Step 5
Repeat with another layer of potatoes, ham and cheese sauce, then finish with a final layer of potatoes and pour all of the remaining cheese sauce over the top layer of potatoes. Spread to ensure all of the potatoes are covered.
Step 6
Sprinkle with 1/4 cup shredded cheddar (if desired) and paprika (about 1/8-1/4 teaspoon).
Step 7
Bake in the 350 degree oven for 20-25 minutes, or until sauce is bubbly.
Step 8
Garnish with fresh minced chives and serve immediately.