In a large saucepan, cover the diced potatoes with water. Bring to a boil; cover, reduce heat and cook until tender. Leave the potatoes and their liquid in the saucepan and gently stir in the cream soups, pepper, and salt, to taste.
In another pan, melt the cheese over low heat with the butter or margarine. Add the cheese mixture and the evaporated milk to the potato mixture and heat through.
Calories per serving: 474