Navy Bean and Ham Bone Soup

1 pound dried navy beans

1 ham bone

1 tablespoon olive oil

1 tablespoon butter

1 large sweet onion, chopped

2 stalks celery, chopped

1 large carrot, peeled and chopped

2 clove garlic, minced

3 fresh thyme sprigs

1 bay leaf

1/2 teaspoon smoked paprika

1 teaspoon crushed red pepper, optional

5 cups chicken broth

5 cups water

1 can (12oz) evaporated milk 

1½ cups smoked ham, cut into small chunks

Salt and pepper to taste