Cheesy Potato Soup

4 Medium Potatoes, diced
1 Large Onion, chopped
1 Quart Water
1/4 Cup Butter
3 Tbsp Flour
1/2 Cup Milk
1 1/2 Cups Shredded Sharp Cheddar Cheese
1 tsp Salt
1/4 tsp seasoned Salt
1/4 tsp Paprika
1/8 tsp ground pepper
Chopped Chives

Combine potatoes, onion and water in heavy saucepan. Bring to a boil. Reduce heat and simmer until tender, about 20 minutes. In heavy skillet, melt butter, add flour. Cook and stir until mixture bubbles. REmove from heat. Stir in milk. Return to heat. Cook and stir until thickened. Stir mixture slowly into potatoes. Cook and stir until thickened. Stir mixture slowly into potatoes, cook and stir until thick. Add cheese and seasonings. Served topped with chopped chives.

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