In a large pot, combine the barley and water and bring to a boil. Reduce heat and simmer for 10 minutes. In the meantime, chop vegetables into bite-sized pieces. In another pan, brown the beef and drain fat. Add all ingredients (except the cheddar cheese) to the barley, bring to a boil again and then continue to simmer until the barley is tender, approximately 1 hour. If the soup becomes too thick, add water as needed. Sprinkle each serving with cheddar cheese. Serves 6-8.