Broccoli Cheese Soup

1 small onion, diced
1 - 10 ounce package of frozen chopped broccoli
2 cups of milk
1 1/2 cups water
1 cup shredded cheddar or monterey jack cheese
2 chicken bouillon cubes
3 tablespoons flour
2 tablespoons butter
1/2 teaspoon salt
1/2 teaspoon pepper

In a large saucepan, cook the onion in butter until tender. Stir in flour, salt, and pepper until blended. Add milk. Cook until thickened, about 2 minutes, stirring constantly. Add cheese and stir until melted. Remove from heat. In medium saucepan, dissolve bouillon cubes in water. Bring to a boil, add broccoli, and cook till broccoli is tender. Do not drain. Add broccoli and the cooking liquid to the cheese mixture, and stir until blended.