Preheat Oven to 350°.
Using 1 tablespoon of butter, grease the bottom
and side of souffle dishes.
Place the milk in a sauce pan, simmer
and cool to lukewarm.
Place the flour in a mixing bowl and pour in
lukewarm milk while stirring with a whisk.
Return mixture to sauce pan and cook
while stirring over medium heat until thick.
Cool mixture slightly and add remaining butter,
cheese, ham and egg yolks.
Mix thoroughly and season with salt and pepper.
Beat egg whites in a separate bowl
until stiff, but not dry.
Fold beaten egg whites into souffle base.
Fill the souffle dishes to the top and bake
in a water bath until puffed and light brown.
Serve immediately.
Serves 8 4-ounce souffle cups or
1 quart souffle dish.