Cheesy Scalloped Potatoes Recipe

If there is one side dish that steals the show at every holiday dinner, it’s Cheesy Scalloped Potatoes. We aren’t talking about the boxed stuff with powdered sauce. We’re talking about layers of tender, thinly sliced potatoes bathing in a rich, garlicky cream sauce, completely smothered in bubbling melted cheddar and gruyere.

This is the ultimate comfort food: creamy, savory, and golden-brown on top. The secret lies in making a simple roux-based cheese sauce before assembling, ensuring every single potato slice is coated in velvety goodness, not watery milk. Whether it’s Easter brunch, Christmas dinner, or just a Tuesday night when you need a hug in food form, these potatoes deliver.

Let’s get cooking.

Why You’ll Love This Recipe

• No Watery Sauce: By making a quick béchamel (flour + butter + milk) first, we guarantee a thick, creamy sauce that clings to the potatoes instead of sliding off.​
• The Cheese Factor: We use a blend of sharp cheddar for punch and gruyere (or parmesan) for nutty depth. It’s not just cheesy; it’s complex.
• Even Cooking: Slicing the potatoes thinly (1/8 inch) ensures they cook through perfectly tender without turning into mush.​
• Make-Ahead Friendly: You can assemble the entire dish the morning of your dinner, keep it in the fridge, and bake it when you’re ready.

Ingredients

Here is your shopping list for potato perfection.

Ingredient	Quantity	Notes
Yukon Gold Potatoes	3 lbs (approx. 5-6 medium)	Creamier and hold their shape better than Russets. No need to peel if you like rustic skins! ​.
Unsalted Butter	4 tbsp	The base of our roux.
Garlic	3-4 cloves	Minced fresh. Do not use the jarred stuff here.
All-Purpose Flour	1/4 cup	To thicken the sauce.
Whole Milk	2 ½ cups	You can also use half-and-half for extra decadence ​.
Sharp Cheddar Cheese	2 cups (shredded)	Crucial: Grate it yourself. Pre-shredded cheese has anti-caking agents that prevent smooth melting.
Gruyere or Parmesan	1/2 cup (shredded)	Adds a sophisticated, nutty salty kick.
Onion	1 small (yellow)	Finely diced or sliced into thin rings for flavor layers ​.
Fresh Thyme	1 tbsp	The earthiness cuts through the rich cheese sauce ​.
Nutmeg	Pinch	A tiny pinch adds that secret “je ne sais quoi” to cream sauces.

Step-by-Step Instructions

1. Prep the Potatoes

Preheat your oven to 400°F (200°C). Grease a 9×13 baking dish with butter.
Wash and scrub the potatoes. Using a mandoline slicer (highly recommended) or a very sharp knife, slice the potatoes into uniform 1/8-inch rounds.

• Chef’s Insight: Uniformity is key. If some slices are thick and some are thin, you’ll have crunchy and mushy bites in the same pan.​

2. Make the Roux

In a medium saucepan over medium heat, melt the butter. Add the diced onion and sauté for 3-4 minutes until soft. Add the minced garlic and cook for just 30 seconds until fragrant.
Sprinkle in the flour and whisk constantly for 1 minute to cook out the raw flour taste.

3. Create the Cream Sauce

Slowly whisk in the milk (and/or half-and-half), adding it gradually to prevent lumps. Add the thyme, salt, pepper, and that pinch of nutmeg.
Simmer for 2-3 minutes until the sauce thickens enough to coat the back of a spoon. Remove from heat.

• Cheesy Magic: Stir in 1 ½ cups of the cheddar and the parmesan/gruyere until smooth. Reserve the rest for the topping.​

4. Layer It Up

Arrange half of the sliced potatoes in the baking dish in slightly overlapping rows (shingles). Pour half of the cheese sauce over the potatoes.
Repeat with the remaining potatoes and the remaining sauce.

• Tip: Give the pan a little shake to help the sauce settle into the nooks and crannies.

5. Bake Covered

Cover the dish tightly with aluminum foil. Bake for 30-40 minutes. The foil traps steam, helping the potatoes cook through faster without burning the cheese.​

6. The Golden Finish

Remove the foil. Sprinkle the remaining 1/2 cup of cheddar cheese over the top. Bake uncovered for another 20-30 minutes until the potatoes are fork-tender and the cheese is bubbly and golden brown.
If you want a crispy crust, broil for the last 2-3 minutes (watch closely!).

Tips for Success

• Grate Your Own Cheese: I cannot stress this enough. Pre-shredded cheese is coated in potato starch (ironic, right?) which prevents it from melting into a silky sauce. Buy the block!
• Don’t Rinse Sliced Potatoes: Unlike fries where we want to remove starch, here the potato starch helps thicken the casserole and bind the layers together. Slice and use immediately.​
• Cool Before Cutting: This is the hardest part. Let the casserole sit for 10-15 minutes after it comes out of the oven. The sauce needs time to set. If you cut into it boiling hot, the sauce will run everywhere.​
• Season as You Layer: Potatoes love salt. Even though the sauce is seasoned, I like to sprinkle a tiny pinch of salt and pepper directly on the potato layers for maximum flavor.

Variations & Substitutions

• Loaded Scalloped Potatoes: Add crispy crumbled bacon and chives between the layers for a “baked potato” vibe.​
• Ham & Cheese: Add diced leftover ham (perfect for post-Easter!) into the layers to turn this side dish into a main course.
• Spicy Kick: Add 1/2 teaspoon of cayenne pepper or crushed red pepper flakes to the cheese sauce for a little heat.​
• Gluten-Free: Swap the all-purpose flour for a 1:1 gluten-free flour blend or cornstarch (mix cornstarch with cold milk first) to thicken the sauce.

What to Serve With It

• Glazed Ham: The saltiness of the ham pairs perfectly with the creamy potatoes.
• Roast Beef: A classic Sunday dinner combination.
• Green Beans Almondine: You need something green and crisp to balance the richness of the potatoes.
• Grilled Chicken: Keep the protein simple and let the potatoes be the star.

Storage & Reheating

• Fridge: Store leftovers in an airtight container for 3-4 days.
• Freezer: You can freeze this, but cream-based sauces can sometimes separate slightly upon thawing. Freeze in individual portions for best results. Thaw overnight in the fridge.
• Reheating: Cover with foil and reheat in the oven at 350°F until warm. The microwave works too, but the texture is better from the oven.

Nutrition Facts

(Estimates per serving)

Nutrient	Amount
Calories	320 kcal
Protein	10g
Carbohydrates	28g
Fat	18g
Calcium	250mg
Sodium	450mg

Diet Suitability: Vegetarian, Gluten-Free (if using GF flour).

Common Mistakes to Avoid

1. Under-cooking the Potatoes: Nothing is worse than a crunchy potato in a gratin. Test the center with a knife; it should slide in with zero resistance.
2. Curdling the Sauce: Do not let the sauce boil vigorously once the cheese is added. High heat can cause the cheese to separate into oil and clumps. Melt it gently off the heat.​
3. Using Waxy Potatoes (Red): Red potatoes can work, but they are very waxy and slippery. Yukon Golds are the perfect middle ground of creamy but firm.

FAQ

Q: What is the difference between scalloped and au gratin potatoes?
A: Technically, scalloped potatoes are cooked in cream/milk sauce (no cheese), and au gratin means topped with cheese/breadcrumbs. However, in modern American cooking (and this recipe!), we combine the best of both worlds by putting cheese in the sauce and on top.​

Q: Can I use heavy cream instead of milk?
A: Yes, if you want it incredibly rich. However, a mix of milk and a roux creates a stable sauce that isn’t greasy.

Q: Why is my sauce watery?
A: This usually happens if the potatoes weren’t cooked long enough to release their starches, or if you used a low-fat milk that broke during baking. Stick to whole milk or 2%.

Conclusion

These Cheesy Scalloped Potatoes are proof that simple ingredients—potatoes, cheese, cream—can create something truly spectacular. They are bubbly, golden, and rich enough to anchor any celebratory meal.

Be warned: there are rarely leftovers.

If you loved this comforting side, try my Cracker Barrel Coca Cola Cake Recipe or The Best Cannoli Cookies Recipe next!