In a large skillet over medium heat, saute onions in the margarine. When tender add cabbage and stir. Pour water over, cover and simmer gently on medium low for ten minutes.
Add potatoes and mix. Cover again and allow to simmer for ten more minutes. Additional water may be needed. Sprinkle seasoning salt and paprika over cabbage and potatoes. Allow to simmer covered for an additional 5 to 10 minutes *until cabbage is soft and potatoes are nearly cooked. Mix ham in and finish cooking until ham is hot and potatoes are done.