Creamy Cheesy Potato Casserole

Category: Perfect Side Dishes

These cheesy scalloped potatoes combine russet and Yukon gold potatoes layered with a creamy sauce made from sharp cheddar, white cheddar, butter, and garlic. The potatoes are thinly sliced and arranged with sweet onions, then covered in a rich sauce seasoned with smoked paprika and herbs. After baking for an hour, the dish emerges with a golden, bubbly cheese topping and perfectly tender potato layers beneath. This classic American side dish serves 10 and pairs beautifully with nearly any main course, from holiday roasts to weeknight dinners.

A woman in a chef's outfit poses for a picture.
Updated on Thu, 01 May 2025 16:10:13 GMT
A white bowl filled with cheesy scalloped potatoes. Pin
A white bowl filled with cheesy scalloped potatoes. | applefoodie.com

This hearty cheesy scalloped potatoes recipe has been my secret weapon for holiday dinners and family gatherings. The combination of two potato varieties creates the perfect texture while layers of homemade cheese sauce transform simple ingredients into something truly spectacular.

I first made these scalloped potatoes for a Christmas dinner when my oven broke down and I had to prepare everything in advance. What started as a kitchen emergency has become our most requested side dish, especially from my brother-in-law who claims he dreams about these potatoes between family gatherings.

Ingredients

  • Russet Potatoes provide a fluffy texture that absorbs the creamy sauce beautifully. Choose firm potatoes without green spots or sprouts.
  • Yukon Gold Potatoes add a buttery flavor and hold their shape well during baking. The combination of both potato types creates the perfect texture balance.
  • Sweet Onion brings a mild flavor that caramelizes slightly during baking. Vidalia onions work particularly well here.
  • Butter forms the base of our roux and adds richness. Use unsalted butter to control the sodium level.
  • Garlic adds aromatic depth that infuses the cream sauce. Fresh cloves produce significantly better flavor than pre-minced options.
  • Onion Powder intensifies the savory notes without adding additional moisture or texture.
  • Smoked Paprika contributes a subtle smoky undertone that elevates the entire dish. Spanish smoked paprika provides the best flavor.
  • Dried Parsley adds color and a fresh herbaceous note. Crush it between your fingers before adding to release more flavor.
  • Sea Salt enhances all the flavors. Kosher salt works well as an alternative.
  • Freshly Ground Black Pepper provides complexity and slight heat. Always grind it fresh for maximum flavor.
  • All Purpose Flour thickens the sauce perfectly. Measure carefully for best results.
  • Chicken Broth adds savory depth to the sauce. Vegetable broth works well for a vegetarian version.
  • Milk creates the creamy base. Whole milk can be substituted for a richer result.
  • Sharp Cheddar provides the signature tangy flavor. Grate it yourself for better melting.
  • White Cheddar adds creaminess with a milder flavor profile. The combination of both cheddars creates the perfect flavor balance.

Step-by-Step Instructions

Prep Your Baking Dish
Preheat your oven to exactly 400°F and prepare your casserole dish with a light coating of cooking spray or olive oil. The high temperature is crucial for developing those coveted crispy edges while ensuring the center cooks through properly. A glass baking dish works particularly well as it conducts heat evenly through the layers of potatoes.
Create The Perfect Cheese Sauce
Begin by melting butter in a large skillet over medium-low heat until it foams slightly but doesn't brown. Add minced garlic and cook for precisely one minute while stirring constantly to prevent burning which would create bitterness. Whisk in the flour thoroughly to create a smooth paste and continue cooking for 3 to 4 minutes while whisking constantly. This cooking time removes the raw flour taste and creates a nutty flavor foundation. Incorporate all seasonings now so they bloom in the hot fat. Gradually add chicken broth and milk in alternating small amounts about ¼ cup at a time while whisking continuously to prevent lumps from forming. This gradual addition ensures a perfectly smooth sauce. Simmer the mixture for 5 minutes until it thickly coats the back of a spoon. Reduce heat to low before adding the initial portion of cheeses and whisk until completely melted and velvety smooth.
Layer With Precision
Begin by arranging half the potato slices in the prepared baking dish slightly overlapping each slice for even cooking. Distribute half the sliced onions evenly across the potatoes. Pour exactly half the warm cheese sauce over this first layer ensuring complete coverage. The sauce should seep between the potato slices. Repeat with remaining potatoes and onions in an even layer followed by the rest of the cheese sauce. Sprinkle the reserved cheeses evenly across the top which will create the golden bubbly crust everyone fights over.
Perfect The Bake
Cover the dish tightly with aluminum foil which traps steam and cooks the potatoes through without over-browning the top. Bake covered for exactly 30 minutes. Then remove the foil and continue baking for another 30 minutes until the top turns a deep golden brown with bubbling edges. The potatoes should be fork-tender all the way through. Allow the dish to rest for 5 to 10 minutes before serving which helps the sauce set slightly making it easier to serve intact portions.
A white bowl filled with cheesy scalloped potatoes. Pin
A white bowl filled with cheesy scalloped potatoes. | applefoodie.com

My absolute favorite ingredient in this recipe is the smoked paprika. It was actually a happy accident when I ran out of regular paprika years ago and substituted the smoked variety I had bought for another recipe. The subtle smokiness transforms these potatoes from good to unforgettable, and now my family notices immediately if I try to skip it.

Make-Ahead Instructions

These scalloped potatoes actually benefit from being made ahead of time. You can prepare the entire dish up to 24 hours in advance stopping just before baking. Cover tightly with plastic wrap then foil and refrigerate. When ready to bake remove from the refrigerator 30 minutes before cooking to take the chill off. You may need to add an extra 10 to 15 minutes to the covered baking time if cooking from cold. This make-ahead option makes these potatoes perfect for holiday meals when oven space and timing are critical.

Storage And Reheating

Leftover scalloped potatoes will keep in an airtight container in the refrigerator for up to 4 days. The flavor actually improves after a day as the ingredients have time to meld together. For the best reheating results place portions in an oven-safe dish covered with foil and heat at 350°F until warmed through about 20 minutes. You can also microwave individual portions but the texture will be slightly less creamy. If the sauce has thickened too much during storage add a splash of milk before reheating.

Perfect Pairings

These cheesy scalloped potatoes pair beautifully with nearly any protein. They shine alongside a holiday ham or roast beef but are equally delicious with simple grilled chicken or pork chops. For a complete comfort food meal serve with a crisp green salad dressed with a vinaigrette to balance the richness. A glass of buttery Chardonnay or light-bodied Pinot Noir complements the creamy cheese sauce perfectly. For family gatherings I often serve these potatoes alongside my slow-cooked pot roast and homemade applesauce for a meal that brings everyone to the table.

Customization Options

The basic recipe is incredibly versatile and welcomes thoughtful additions. For a heartier version add 1 cup of diced ham or crumbled bacon between the layers. Vegetable additions like thinly sliced mushrooms sautéed leeks or roasted red peppers work beautifully. For herb variations consider adding fresh thyme rosemary or sage to the cheese sauce. You can also experiment with different cheese combinations using Gruyère for a nutty flavor or adding a few tablespoons of Parmesan to the topping for extra crispiness. Just maintain the same total quantity of cheese for proper sauce consistency.

A bowl of cheesy scalloped potatoes. Pin
A bowl of cheesy scalloped potatoes. | applefoodie.com

Frequently Asked Questions About the Recipe

→ Can I make cheesy scalloped potatoes ahead of time?

Yes, you can assemble the entire dish up to 24 hours in advance. Cover tightly with foil and refrigerate. When ready to bake, allow the dish to sit at room temperature for 30 minutes before baking. You may need to add 10-15 minutes to the covered baking time since the dish will be cold from the refrigerator.

→ What's the difference between scalloped potatoes and au gratin potatoes?

Traditionally, scalloped potatoes are made with a cream sauce without cheese, while au gratin potatoes include cheese in the sauce and often have cheese sprinkled between layers. However, modern recipes often blur these lines, and this version with cheese is sometimes called 'scalloped au gratin potatoes.'

→ Can I use pre-shredded cheese for this dish?

While you can use pre-shredded cheese in a pinch, freshly grated cheese is recommended. Pre-shredded cheese contains anti-caking agents that can affect the texture and melting quality of the sauce, resulting in a less creamy consistency.

→ Why use two types of potatoes in this dish?

Using both Russet and Yukon Gold potatoes provides the perfect balance of texture and flavor. Russets are starchy and help thicken the sauce, while Yukon Golds hold their shape better and have a naturally buttery flavor that enhances the dish.

→ Can I make this dish vegetarian?

This dish is already vegetarian if you use vegetable broth instead of chicken broth. Simply substitute an equal amount of vegetable broth for the chicken broth called for in the recipe.

→ How thin should I slice the potatoes?

For even cooking, slice the potatoes between 1/8 and 1/4 inch thick. A mandoline slicer is ideal for achieving uniform thickness, but a sharp knife works well too. Consistent thickness ensures all potato slices will be tender at the same time.

Cheesy Scalloped Potatoes

Tender potato slices in a rich cheese sauce with sharp cheddar, garlic, and herbs, baked until golden and bubbling.

Preparation Time
20 min
Cook Time
60 min
Total Time
80 min
By: Ava

Category: Side Dishes

Skill Level: Intermediate

Cuisine: American

Yield: 10 Serves

Dietary Preferences: Vegetarian

Ingredients

→ Potatoes

01 2 lbs Russet Potatoes, peeled and sliced into 1/8 inch rounds
02 2 lbs Yukon Gold Potatoes, peeled and sliced into 1/8 inch rounds

→ Vegetables

03 1 medium sweet onion, thinly sliced

→ Butter and Seasonings

04 1/4 cup butter
05 4 cloves garlic, minced
06 1/4 teaspoon onion powder
07 1/4 teaspoon smoked paprika
08 1/2 tablespoon dried parsley
09 1 teaspoon sea salt
10 1/2 teaspoon freshly ground black pepper

→ Flour and Broth

11 1/4 cup all-purpose flour
12 1 cup low-sodium chicken broth

→ Dairy

13 2 cups 2% milk
14 2 cups freshly grated sharp cheddar, reserve 1/2 cup for top
15 1 cup freshly grated white cheddar, reserve 1/4 cup for top

Steps

Step 01

Preheat the oven to 400°F (200°C). Spray a 9x13 inch casserole dish with olive oil or nonstick cooking spray.

Step 02

Melt butter over medium-low heat in a large skillet. Sauté minced garlic for 1 minute, stirring constantly. Whisk in the flour and cook for 3–4 minutes while whisking constantly. Add onion powder, smoked paprika, dried parsley, salt, and fresh ground black pepper. Gradually whisk in chicken broth and milk, alternating between the two. Continue whisking until smooth, then simmer for 5 minutes. Reduce heat to low and whisk in 1/2 cup sharp cheddar and 3/4 cup white cheddar until melted. Keep sauce warm while layering potatoes.

Step 03

Add half the sliced potatoes and onions to the casserole dish in an even layer. Pour half of the cheese sauce over the potatoes. Add the remaining potatoes and onions, followed by the remaining cheese sauce. Sprinkle the reserved cheeses on top.

Step 04

Cover the casserole with foil and bake for 30 minutes. Remove the foil and bake uncovered for an additional 30 minutes, or until the top is golden and bubbling. Let rest briefly before serving.

Notes & Tips

  1. Slice potatoes to about 1/8 to 1/4 inch for even cooking.
  2. Avoid boiling the sauce; a gentle simmer ensures a creamy consistency.
  3. Use freshly shredded cheese for better flavor and texture.

Necessary Equipment

  • Large skillet
  • Whisk
  • 9x13 inch casserole dish
  • Aluminum foil

Allergy Information

Always double-check ingredient labels for allergens and consult a healthcare professional if you’re unsure.
  • Contains dairy (butter, milk, cheese)
  • Contains gluten (all-purpose flour)