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1
In a saucepan over high heat, bring the water to a boil.
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2
Add the ham and simmer for 30 seconds.
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3
Remove from heat and drain well.
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4
Set aside.
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5
Oil a 9 by 13 baking dish.
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6
Distribute one fourth of the potatoes evenly over the bottom of the prepared dish.
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7
Distribute one third of the ham evenly over the potatoes.
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8
Top with of the remaining potatoes and then all of the remaining ham.
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9
Top with all the remaining potatoes, layering the slices attractively.
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10
Preheat the oven to 350*F (180*C) Pour the milk into a saucepan placed over medium heat and warm until bubbles appear at the edges of the pan.
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11
Remove from heat.
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12
In another saucepan over medium heat, melt the butter.
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13
Stir in the flour and cook,stirring constantly for 2 minutes.
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14
(DO not brown) Gradually stir in the hot milk and cook, stirring, until the mixture thickens, 4 to 5 minutes.
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15
Remove from the heat.
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16
Stir in the cheeses, mustard, cayenne and season to taste with salt and pepper.
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17
Return the pan to low heat and stir just until the cheese melts.
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18
Pour the cheese sauce evenly over the potatoes and ham.
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19
Bake, uncovered until the potatoes can be easily pierced with a skewer and the top is golden brown, about one hour.