Ham Potato Casserole

2 cups cubed peeled potatoes
1 large carrot, sliced
2 celery ribs, chopped
3 cups water
2 cups cubed fully cooked ham
2 tablespoons chopped green pepper
2 teaspoons finely chopped onion
7 tablespoons butter, divided
3 tablespoons all-purpose flour
1-1/2 cups milk
3/4 teaspoon salt
1/8 teaspoon pepper
1 cup (4 ounces) shredded cheddar cheese
1/2 cup soft bread crumbs

In a saucepan, bring the potatoes, carrot, celery and water to a boil. Reduce heat; cover and cook about 15 minute or until tender. Drain.

In a large skillet, saute the ham, green pepper and onion in 3 tablespoons butter until tender. Add to the potato mixture. Transfer to a greased 1-1/2-qt. baking dish.

In a saucepan, melt the remaining butter; stir in flour until smooth. Gradually add milk, salt and pepper. Bring to a boil; cook and stir for 2 minutes or until thickened.

Reduce heat; add cheese and stir until melted. Pour over the ham mixture. Sprinkle with bread crumbs. Bake, uncovered, at 375° for 25-30 minutes or until heated through. Makes 4-6 servings.