Heat butter in skillet until melted. Add flour. Use whisk to mix well. Set aside.
Meanwhile, heat chicken broth in large stock pot until boiling. Stir in flour mixture using whisk. Mix well until thickened.
Add milk, potatoes. Return to a boil. Turn down to medium and cook for about 5 minutes.
Add broccoli. Let simmer for another 10 minutes. Add cheese, ham, salt, pepper and nutmeg. Heat through. Serve warm with baguettes.