Scalloped Ham and Potatoes

• 4 lbs potatoes
• 6 T butter or margarine
• 6 T flour
• Salt and pepper
• 5 cups milk
• 2 cups grated cheese
• 2 cups diced ham (or leftover sliced deli meat ham)

Preheat oven to 350. Wash potatoes; pare thinly and remove eyes. Cut potatoes into thin slices to measure about 4 cups. Melt butter in saucepan over low heat. Blend in flour, salt, and pepper. Warm milk in microwave. Cook over low heat, stirring until mixture is smooth and bubbly. Remove from heat. Stir in warm milk. Heat to boiling, stirring constantly. Boil and stir 1 minute. Mix potato, cheese, and ham in mixing bowl. In greased 9x13 Pyrex pan, arrange potatoes in 2 layers, topping each with 1/3 of the white sauce. Top with remaining potatoes and sauce. COVER, bake 60 minutes. UNCOVER, bake 30 minutes longer or until potatoes are tender. Let stand 5-10 minutes before serving.