Dice potatoes and place in a saucepan filled with salted water over medium heat. Bring to a boil, reduce heat, and simmer until tender, about 20 minutes. Drain, reserving 1/2 cup of the cooking water.
Slice leeks into rings 1/8 inch thick and place in a large bowl filled with cold water. Swish and wash thoroughly to remove any grit which should settle to the bottom. Scoop leek pieces into a colander. Rinse and drain. If necessary, repeat.
Melt butter in a large skillet over medium heat. Add leeks and cook slowly until tender, about 30-40 minutes. Stir in flour, followed by milk, stirring until thickened and bubbling. Add cheese and stir until melted. Remove from heat and stir in potatoes. If needed, stir in several tablespoons of cooking water to make a sauce.
Season with nutmeg, and salt and pepper to taste. Set aside.