Cheesy Scalloped Potatoes Recipe

Indulge in pure comfort with this Cheesy Scalloped Potatoes recipe—a creamy, dreamy casserole that couldn’t be easier to make and is practically guaranteed to steal the show at any meal. Golden layers of tender potatoes are bathed in a rich, velvety cheddar cheese sauce, made extra special with sweet caramelized onions and just a hint of thyme. This dish comes together quickly with fuss-free steps, making it perfect for busy weeknights, holidays, or any time you’re craving something cheesy and cozy.

Why You’ll Love This Recipe

  • Quick Home-Cooked Comfort: No complicated techniques or special equipment, just straightforward steps and everyday ingredients.
  • Big on Flavor: Sweet caramelized onions, robust cheddar, and a touch of mustard bring irresistible depth to every bite.
  • Family Friendly: This dish is utterly crowd-pleasing—kids and adults alike will come back for seconds (maybe even thirds).
  • Perfect Make-Ahead: You can prep most of it ahead of time, making dinner time stress-free.
  • Highly Adaptable: Swap out cheeses or add a protein for endless possibilities.

Ingredients You’ll Need

Here’s a quick peek at what you need, and why each ingredient matters:

  • Butter: Used for both caramelizing onions and creating a rich base for the cheese sauce.
  • Olive Oil: Helps caramelize the onions, giving them an irresistible sweetness.
  • Yellow Onion: Caramelized for a mellow, sweet note that cuts through the richness.
  • Dried Thyme: Adds a gentle earthy background to the dish; feel free to use fresh if you have it.
  • Garlic: Brings aromatic warmth to the cheese sauce.
  • Flour: Essential for thickening the sauce, ensuring it clings to every potato slice.
  • Milk: The foundation of the creamy sauce—whole milk yields the silkiest results.
  • Cheddar Cheese (shredded): The star! Freshly shredded melts better and delivers the best flavor.
  • Cream Cheese: Adds tanginess and an ultra-smooth texture.
  • Mustard Powder: Brightens the sauce, highlighting the cheese flavor.
  • Salt & Pepper: An essential duo for seasoning every layer.
  • Cayenne Pepper: Just a pinch for subtle heat—totally optional but recommended!
  • Yukon Gold or Russet Potatoes: Their starchy texture soaks up flavor and keeps each slice tender yet structured.
  • Note: For the ultimate melt, always use cheese you’ve shredded yourself from a block. Pre-shredded just isn’t the same!

Variations

If you’re in the mood to mix things up, here are some delicious twists:

  • Cheese Swap: Substitute half the cheddar with Gruyère or add a sprinkle of Parmesan on top for nuttier, more complex flavor.
  • Veggie Boost: Layer in thinly sliced leeks, mushrooms, or spinach for color and nutrition.
  • Bacon Lovers: Crumble cooked bacon between potato layers or scatter crisply on top before serving.
  • Smoky Touch: A pinch of smoked paprika or diced smoked ham can take this dish to a whole new level.
  • Dairy-Free: Use plant-based butter, milk, and cheese. While the texture changes, the result is still satisfyingly cozy.

How to Make Cheesy Scalloped Potatoes

1. Caramelize the Onions

Slice your yellow onion into thin strings. Melt a blend of butter and olive oil in a skillet and toss in the onions with dried thyme. Let them slowly cook and caramelize over medium-low heat for about 30 minutes, stirring occasionally. This is where a lot of flavor magic happens.

2. Build the Cheese Sauce

In the same pot, add more butter and a little garlic, letting it bloom for about a minute. Use a spatula to scrape up those oniony brown bits (they’re gold!). Sprinkle in flour, whisk, and cook just until that raw flour smell is gone. Now, gradually add the milk, whisking all the while to keep the sauce super smooth. Bring it just to a boil, then take it off the heat.

3. Season and Add Cheese

Mix in the mustard powder, salt, pepper, and cayenne. Let the sauce cool slightly (this is key!), then slowly sprinkle in almost all of the cheddar cheese—save 1 cup for the top. Stir in cream cheese for extra silkiness, and then fold in the caramelized onions.

4. Layer the Potatoes

Peel, rinse, and cut your potatoes into very thin, even slices (about 1/8 inch). Place half in a greased 9×13-inch baking dish, pour over half the cheese sauce, then repeat with the rest. Scatter the remaining cheddar cheese across the top.

5. Bake to Perfection

Cover and bake at 350°F for 45 minutes, then uncover and continue baking for about 40 minutes until the potatoes are irresistibly tender and the top is bubbling and golden. For extra allure, broil for a minute or two to brown the cheesy crust.

6. Rest and Serve

Let the casserole sit for about 10 minutes before digging in; the sauce will set to the perfect creamy consistency. Garnish with a sprinkle of fresh parsley, and prepare to swoon.

Pro Tips for Making the Recipe

  • Take the time to caramelize—onions add sweetness and depth. In a pinch, a quick sauté will do, but don’t skip them altogether!
  • Always shred your cheese. Pre-shredded brands add anti-caking agents that can compromise melt and taste.
  • For even potato cooking, slice as thinly and uniformly as possible. A mandoline works wonders here.
  • Sauce will look plenty, but trust—it thickens and soaks in as the potatoes bake.
  • To save time, prepare the cheese sauce and onions while slicing potatoes. It all comes together faster than you’d think.

How to Serve

Cheesy Scalloped Potatoes Recipe

Cheesy Scalloped Potatoes pair beautifully with:

  • Main Courses: They’re the ideal match for roasted chicken, glazed ham, grilled steak, or even a simple green salad.
  • Finish with Fresh Herbs: Garnish with chopped fresh parsley, chives, or even thyme for a burst of color and freshness.
  • Turn Leftovers Into Brunch: Spoon reheated potatoes alongside scrambled eggs and crispy bacon for a decadent breakfast treat.

Make Ahead and Storage

Storing Leftovers

Allow to cool, then refrigerate in an airtight container for up to 4 days. The flavors deepen as they sit—leftovers are a treat!

Freezing

Once fully cooled, portion into freezer-safe containers. Freeze for up to 2 months. Thaw overnight in the fridge before reheating.

Reheating

Warm individual portions in the microwave or cover and bake in a moderate oven (350°F) until hot throughout. Add a sprinkle of fresh cheese on top before reheating for extra gooeyness.

FAQs

How thin should the potatoes be sliced?
Aim for about 1/8 inch thick. Thin, uniform slices cook evenly and soak up all that delicious cheese sauce.

Can I make this recipe ahead for entertaining?
Absolutely! Assemble and partially bake, then cover and chill. When ready to serve, top with reserved cheese and finish baking for bubbling hot perfection.

Is it necessary to peel the potatoes?
For the creamiest texture and classic look, peel them. But if you like a rustic feel and are using thin-skinned Yukons, feel free to leave the peels on—just scrub them well.

Can I use a different type of cheese?
Definitely! Gruyère, mozzarella, or a touch of Parmesan brings their own character. For the best melt, avoid low-moisture or pre-shredded cheeses.

Final Thoughts

Cheesy Scalloped Potatoes are pure comfort on a plate—easy enough for cozy weeknights, yet special enough for a celebration. If you’re craving something golden, bubbling, and deeply satisfying, this recipe won’t let you down. Gather your ingredients and give it a try; you might just discover your new favorite side dish!

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Cheesy Scalloped Potatoes Recipe

Cheesy Scalloped Potatoes Recipe

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  • Author: Emily
  • Prep Time: 10 minutes
  • Cook Time: 1 hour 40 minutes
  • Total Time: 1 hour 50 minutes
  • Yield: 8 servings
  • Category: Side-dishes
  • Method: Baking
  • Cuisine: American
  • Diet: Vegetarian

Description

Cheesy Scalloped Potatoes are a rich, comforting side dish featuring thinly sliced Yukon Gold or Russet potatoes baked in a luscious homemade cheddar cheese sauce with caramelized onions for extra sweetness and flavor. Perfectly creamy and cheesy with a crisp, golden topping, these potatoes are ideal for holidays or family dinners.


Ingredients

Units Scale

Main Ingredients

  • 2.5 lbs. Yukon Gold or Russet Potatoes (about 6 medium), peeled and sliced into 1/8-inch thick rounds
  • 6 tablespoons butter, separated
  • 1 tablespoon olive oil
  • 1 large yellow onion
  • 1/2 teaspoon dried thyme
  • 2 cloves garlic, minced
  • 4 tablespoons flour
  • 3 cups milk
  • 3 1/2 cups shredded orange cheddar cheese, divided
  • 2 tablespoons cream cheese, softened
  • 1/2 teaspoon mustard powder
  • 1/2 teaspoon salt
  • 1/4 teaspoon pepper
  • 1 pinch cayenne pepper

Instructions

  1. Prepare Ingredients – Preheat oven to 350°F (175°C). While caramelizing the onions, measure and prepare all remaining ingredients for ease of cooking.
  2. Caramelize Onions – Cut the onion into 1/4-inch strings. Melt 2 tablespoons butter and olive oil in a large skillet over medium-low heat. Add sliced onions and thyme, and cook for about 30 minutes, stirring often, until the onions are golden brown and caramelized. Set aside when done.
  3. Make Roux – Increase the skillet heat to medium. Melt the remaining 4 tablespoons of butter in the pot, add minced garlic, and cook for 1 minute, scraping up any browned bits. Add the flour, whisking continuously for about 1 minute or until the raw flour smell is gone.
  4. Add Milk – Slowly pour in the milk, whisking constantly to create a smooth, thick sauce. Bring to a gentle boil, then remove from heat.
  5. Season Sauce – Stir in mustard powder, salt, pepper, and cayenne pepper to the sauce for extra flavor.
  6. Add Cheese & Cream Cheese – Allow the sauce to cool slightly. Reserve 1 heaping cup of cheddar cheese for the topping, and gradually blend the remaining cheese into the sauce until melted. Add cream cheese and mix well. Stir in the caramelized onions.
  7. Slice Potatoes – As the sauce cools, peel and rinse the potatoes. Pat them dry and thinly slice them to about 1/8-inch thickness for even cooking.
  8. Layer Potatoes and Sauce – Lightly grease a 9×13-inch baking dish. Arrange half the potato slices on the bottom, then cover with half the cheese sauce. Repeat with the remaining potatoes and cheese sauce. Sprinkle reserved cheddar cheese over the top.
  9. Bake – Cover the baking dish with foil and bake for 45 minutes. Remove the cover and continue baking for 40 more minutes, or until the potatoes are fork-tender and the top is golden and bubbly.
  10. Broil and Rest – Optional: Broil at 400°F for a few minutes to brown the top (watch closely). Let the dish rest for 5-10 minutes before garnishing with fresh parsley and serving.

Notes

  • Caramelizing onions adds rich flavor, but you can just soften them to save time.
  • For best texture, shred cheese from a block instead of using pre-shredded varieties.
  • Gruyere, mozzarella, or parmesan can be used as alternatives to cheddar.
  • This recipe makes an extra-cheesy sauce to keep potatoes creamy, even as they absorb the sauce while baking or leftover.
  • For a lighter cheese sauce, try ‘Au Gratin Potatoes’ using gruyere and parmesan without flour thickener.
  • Crock Pot Method: Layer potatoes and cheese sauce in a greased slow cooker, top with cheese, and cook on low for 7-8 hours.
  • Make-Ahead: Assemble and bake (without final cheese topping) for 45 minutes, cool, chill up to 3 days, then top with cheese and bake 55 minutes before serving. Broil if desired for a golden top.

Nutrition

  • Serving Size: 1/8 of casserole
  • Calories: 420
  • Sugar: 6g
  • Sodium: 620mg
  • Fat: 25g
  • Saturated Fat: 14g
  • Unsaturated Fat: 8g
  • Trans Fat: 0.5g
  • Carbohydrates: 35g
  • Fiber: 3g
  • Protein: 14g
  • Cholesterol: 65mg

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