Cheesy Potato Soup

INGREDIENTS:
4 medium potaotes, diced
1 medium onion, chopped
1 quart water
3 tbsp flour
1 tsp salt
1/4 cup butter
1/2 cup milk
2 cups shredded cheddar cheese
1/2 tsp paprika
1/2 tsp seasoned salt
1/4 tsp basil
1/2 tsp black pepper
Chopped Chives
Bacon Bits

INSTRUCTIONS:
Combine potatoes, onion, water, and salt in a heavy saucepan.  Bring to a boil, reduce heat and simmer until tender (about 20 minutes).  In a heavy skillet melt butter.  Add flour; cook and stir until mixture bubbles.  Remove mixture from heat; stir in milk.  Return to heat; cook and stir until thickened.  Stir mixture slowly into potatoes.  Cook and stir until thick.  Add cheese and seasonings.  Serve topped with chives and Bacon Bits.   Yield:  4-6 servings.