Potato Cheese Soup

(credit to Kellie)
INGREDIENTS
4 medium potatoes, peeled and diced
1 teaspoon onion powder
4 cups water
¼ cup butter or margarine
3 Tablespoons flour
½ cup milk
1 ½ cups (6 ounces) sharp Cheddar cheese (you can do part mild cheddar if desired)
1 teaspoon salt
¼ teaspoon seasoned salt
¼ teaspoon paprika
1/8 teaspoon pepper
chopped chives or parsley

DIRECTIONS
Combine potatoes, onion powder, and water in heavy saucepan. Bring to boil; reduce heat; 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, UNDRAINED, cook and stir until thick. Add cheese and seasonings. Serve with chopped chives or parsley. Can be served in bread bowls.
NOTE: Sometimes using some American cheese and some regular cheddar can help you get a creamier texture.