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Grandma's Potato Soup

Dice 3 medium red potatoes and boil until tender. Drain, reserving liquid. Sauté 1 small minced onion in 3 tbs. butter until tender, and then stir in 3 tbs flour. Gradually add the potatoes then 1 c. cooking liquid, 3 c milk, ½ tsp sugar, and 1 c. shredded Cheddar cheese. Garnish with parsley. (1 c. cubed cooked ham can also be added.) Simmer 30 min.
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