Step 1

Preheat oven to 400º. Butter an 8 x 8 inch baking dish.

Step 2

Peel and dice potatoes into small cube. Cut ham into similar sized cubes. Combine the ham and potatoes in a mixing bowl.

Step 3

Saute onions in a tablespoon of butter in a skillet over medium heat. Once softened add flour and whisk together for a minute. Gradually add warm milk whisking until it has slightly thickened. It should be pourable, if not add more milk. Salt and pepper to taste.

Step 4

Add a cup of cheese to the sauce and stir until melted. Pour over the ham and potatoes. Stir until coated and place in the prepared baking dish.

Step 5

Cover with foil and bake for 40 minutes or until the potatoes are soft and the sauce is bubbly. Remove and add additional cheese. Place under the broiler for 2 minutes until the cheese is melted and starts to brown.