In a Dutch oven, combine the first 7 ingredients. Bring to a boil. Reduce heat; cover and simmer for 10-12 minutes or until tender.

Meanwhile, place flour in a large saucepan; gradually whisk in milk. Bring to a boil over medium heat; cook and stir for 2 minutes or until thickened. Remove from the heat. Add cheese; stir until melted. Stir the ham and the cheese sauce into undrained vegetables; stir until combined.