Scalloped Potatoes with Ham

1 pound fully cooked ham slice, 1/2-inch thick

5 cup thinly sliced potatoes

1 can (10 and 1/2 ounces) cream of mushroom soup or cream of celery soup

1/4 cup milk

1/2 cup chopped onion

1/4 cup chopped green bell pepper

dash of pepper

2 tablespoons butter

1 cup of shredded cheddar cheese (optional)

Cut ham in bite-sized cubes. Place half of the potatoes in a greased, shallow, 2-quart baking dish. Cover with ham pieces. Top with remaining potatoes. Combine soup with milk, onion, green bell pepper, and ground black pepper. Pour over potatoes. Dot with butter. Cover with foil and bake at 350 F for 1 hour. Remove covering; bake 30 to 45 minutes longer, or until potatoes are done. If desired, sprinkle shredded cheddar cheese over the top of scalloped potatoes the last 15 minutes of baking time. Serves 6.