While water is heating, make the cheese sauce. In a medium saucepan, heat the butter and flour, whisking until smooth and bubbly to make a roux. Cook on medium heat 2 minutes to cook the flour. Slowly, whisking constantly, add the milk. Reduce heat to medium and cook, stirring, until mixture is thickened. Remove from the heat and add the Italian seasoning, cheeses, salt, pepper, dijon, ham, and peas.