Cheesy potato soup

1/4 c. butter, melted
1 lb. potatoes peeled and cubed
1 tsp. paprika
2 c. milk
13 3/4 oz. can chicken broth
1 c. water
1 tsp salt
1/4 tsp pepper
10 oz package of shredded sharp cheddar cheese


Combine butter and potatoes in a large saucepan, and cook for 10 min. Stir in paprika and cook for one additional min. Add milk, broth, water, salt, and pepper. (I sometimes add some onion salt as well.) Bring to a boil. Simmer for 20 min and remove from heat. Stir cheese into hot soup until melted.