Cook two large potatoes in the microwave until soft. (Cook earlier so they will be cool enough to peel.)
Preheat oven to 350 degrees.
Peel potatoes and cut into slices. Put one layer in the bottom of a 8x8 baking dish.
Cover potato layer with chopped ham and half of your shredded cheese (1 cup).
Add second layer of potatoes to top.
Mix water and cream of mushroom soup. Then pour over top of potatoes.
Cook at 350 degrees for 30 minutes.
Remove from oven and add remaining half of cheese (1 cup). Return to oven to melt the cheese for about 5-10 minutes.