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1. In a medium saucepan combine chicken broth, potato, celery, carrot, and green or red sweet pepper. Bring to boiling; reduce heat. Cover and simmer for 10 to 12 minutes or until vegetables are tender.
2. In a small bowl stir together milk and flour; stir into saucepan. Cook and stir until thickened and bubbly. Cook and stir for 1 minute more. Stir in cheese until melted; stir in nutmeg.Makes 4 servings.