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Melt 4 T. butter in saucepan and add flour, blending well. Add milk, stirring well and cooking over medium heat until thickened. Add nutmeg and salt and pepper to taste. Remove from heat.
Cook ham in 2 T. butter about 10 minutes, stirring, and add chives. Cook gently 3-4 more minutes.
Add sherry and heat through. Combine the ham with the cream sauce and serve.