The observation of submilliwatt switching and optical bistability in an InGaAs/InP MQW waveguide Fabry-Perot cavity using diode laser sources is reported. Second-order bistability was also observed, with a higher power colour-centre laser source, showing that optically-induced phase shifts of greater than 2x can be achieved at power levels of less than 5 mW. A switch contrast of approximately 3:1 was observed.