Melt butter in a large pot over medium heat.
Sprinkle the flour over the butter and continue to stir for 2 minutes to make a roux.
Add the vegetable broth, milk, onion powder, and chopped broccoli. Mix well. Turn the heat to high and let the mixture come to a boil. Stir occasionally.
Reduce the heat to medium/low. The mixture needs to continue cooking until the broccoli is tender, about 10 minutes. Stir occasionally.
Remove from heat and let mixture cool for a bit. In two batches puree the mixture in a blender or hand held blender.
Returning both mixtures to the large pot. Add the cheddar cheese and stir until all the cheese is melted. Add salt, pepper, and nutmeg. ENJOY!