In a large skillet, cook potatoes in butter until potatoes are lightly browned. Add water; bring to a boil. Reduce heat; cover and simmer for 14-15 minutes or until potatoes are tender. , Meanwhile in a small bowl, combine the milk, soup mix and parsley; stir in cheese. Pour over potatoes. Add ham; cook and stir gently over medium heat until cheese is melted and sauce is bubbly.