Combine water and bouillon granules; set aside. Melt butter in a skillet over low heat; add 1/4 cup flour, stirring until smooth. Cook 1 minute, stirring constantly. Gradually add bouillon mixture and evaporated milk; cook over medium heat, stirring constantly, until mixture is thickened and bubbly. Add ham and next 5 ingredients; cook over low heat, stirring constantly, until thoroughly heated. Spoon into a lightly greased 9x13 inch baking dish.
Combine 2 cups flour, cornmeal, baking powder, and salt; cut in shortening with a pastry blender until mixture resembles coarse meal. Add 1 cup milk, stirring just until dry ingredients are moistened. Turn dough out onto a lightly floured surface, and knead 4 or 5 times. Roll dough to a 12x10 inch rectangle; sprinkle with paprika. Sprinkle cheese over paprika. Starting with long side, roll jellyroll fashion, turning seam side down. Slice into 15 biscuits; arrange over ham mixture. Bake at 425 degrees F for 15 minutes or until biscuits are golden.
By Robin from Washington, IA
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