Place potatoes, onions and water in a pan, and cook covered, till potatoes are cooked soft.
Cool and blend smooth in a blender or pass through a soup strainer.
Measure liquid back into the saucepan, adding 1 cup milk and water if required.
Add salt, black pepper, nutmeg and bring to a boil.
Lower the heat and simmer for about 5 minutes.
Serve hot garnished with the cheese.
Key Ingredients: Potatoes, Onion, Milk, Cream, Salt, Black Pepper, Nutmeg, cheddar Cheese, Ham