In 12-inch nonstick skillet, melt butter over medium heat. Add chicken; cook and stir until browned.
Stir in frozen vegetables and water; cover and cook 13 to 17 minutes or until chicken is no longer pink in center and potatoes are tender.
Stir in Alfredo sauce. Reduce heat to low; cook 1 to 2 minutes longer or until thoroughly heated. Top individual servings with cheese.