Can I make Cheesy Scalloped Potatoes ahead of time?

Absolutely—assemble, cover, and bake for the first 45 minutes, then cool and refrigerate for up to 3 days. When ready to serve, top with the remaining cheese and finish baking until hot and bubbly.

What potatoes are best for scalloped potatoes?

Yukon Golds or Russets are ideal. Yukon Golds offer a naturally creamy texture and hold their shape, while Russets bring an extra-fluffy, tender bite.

Why did my cheese sauce turn grainy?

This usually happens if the cheese is added when the base is too hot, or if pre-shredded cheese is used. For the smoothest sauce, let the sauce cool briefly before stirring in freshly shredded cheese.

Can I make these gluten-free?

Absolutely! Replace the flour with a 1:1 gluten-free baking blend, or thicken the sauce with a cornstarch slurry added after the milk has been incorporated.

Cheesy Scalloped Potatoes Recipe

Name: Cheesy Scalloped Potatoes Recipe
Prep time: 10 min
Cook time: 1 h 40 min
Total time: 1 h 50 min
Cuisine: American
Ingredients: 2 tablespoons butter; 1 tablespoon olive oil; 1 large yellow onion, cut into ¼-inch strings; ½ teaspoon dried thyme; 4 tablespoons butter; 2 cloves garlic, minced; 4 tablespoons flour; 3 cups milk; 2 tablespoons cream cheese, softened; 3½ cups shredded orange cheddar cheese, divided; ½ teaspoon mustard powder; ½ teaspoon salt; ¼ teaspoon pepper; 1 pinch cayenne pepper; 2.5 lbs Yukon Gold or Russet potatoes (about 6 medium), peeled and sliced into 1/8-inch thick rounds; Fresh parsley, chopped

This Cheesy Scalloped Potatoes recipe is pure comfort in a casserole dish and unbelievably easy to whip up, even on a weeknight! These potatoes come out decadently creamy, layered with a rich, golden cheddar cheese sauce, and topped with perfectly caramelized onions for a dreamy, sweet finish. Each bite gives you tender potatoes nestled in a savory, cheesy sauce with the subtle depth of mustard, a hint of garlic, and just enough peppery heat to keep things interesting. If you love comfort food that doubles as a showstopper side, you’re going to fall head over heels for this favorite. Whether you’re planning a cozy family dinner or just need an easy side to round out a meal, these scalloped potatoes deliver on taste, ease, and sheer cheesy joy!

Why You’ll Love This Recipe

Weeknight Friendly: With straightforward steps and everyday ingredients, you’ll have these in the oven with just a bit of prep.
Ultra Creamy Texture: The cheese sauce is luxuriously smooth, thanks to a clever combination of shredded cheddar and a touch of cream cheese.
Deep, Layered Flavor: Caramelized onions and a pinch of thyme add a mellow sweetness and savory depth—so worth the extra 10 minutes!
Impresses Everyone: Family, guests, picky eaters—no one can resist the golden, bubbling, cheesy top.
Versatile: Keeps beautifully as leftovers and pairs with almost any main, from ham to roast chicken.

Ingredients You’ll Need

Butter: For sautéing onions and building a savory roux. If you don’t use it, you’ll miss out on that buttery backbone!
Olive Oil: Helps prevent butter from burning while caramelizing onions.
Yellow Onion: Brings the perfect sweet, caramelized flavor to round out the richness.
Dried Thyme: Adds an aromatic, earthy note. Substitute with fresh thyme for extra pop!
Garlic: For gentle background warmth. Freshly minced is best.
Flour: Essential for thickening the cheese sauce.
Milk: Use whole milk for the creamiest results, but 2% works if that’s what’s on hand.
Cheddar Cheese: Shred a block yourself for superior melt and fresh taste. Pre-shredded just doesn’t compare!
Cream Cheese: Adds extra silkiness and body to the sauce.
Mustard Powder: Brings zingy complexity. Don’t worry—your potatoes won’t taste “mustardy,” just more flavorful.
Salt and Pepper: Season to taste and balance the richness.
Cayenne Pepper: Just a pinch wakes up the cheese and complements the sweetness of onions.
Yukon Gold or Russet Potatoes: These types give you the creamiest, soft-yet-structured texture.

Note: You’ll find the complete list of ingredients, along with their exact measurements, in the printable recipe card at the bottom of this post.

Variations

Extra Cheesy: Mix half cheddar, half Gruyere or add a layer of parmesan on top for a nutty twist.
Bacon Boost: Sprinkle crisp bacon bits between layers or on top before baking for smoky flavor.
Spice It Up: Use smoked paprika in place of cayenne if you want a more subtle heat.
Veggie Power: Layer in thin slices of zucchini, sweet potatoes, or even spinach for color and nutrition.
Make it Gluten-Free: Swap all-purpose flour for a gluten-free blend, or thicken the sauce with cornstarch.

How to Make Cheesy Scalloped Potatoes

Step 1: Preheat and Prep

Begin by preheating your oven to 350°F, and lightly grease a 9×13-inch casserole dish.

Step 2: Caramelize the Onions

Thinly slice your onion into ¼-inch strings. Melt butter and a splash of olive oil in a skillet over medium-low heat. Toss in onions and thyme and slowly caramelize for about 30 minutes, stirring every few minutes until they’re golden and sweet. Remove from heat and set aside.

Short on time? Just soften the onions instead of full caramelization—they’ll still add great flavor!

Step 3: Build the Cheese Sauce

In the same pot, melt more butter over medium heat. Sauté the garlic for a minute, scraping up any delicious browned bits. Sprinkle in the flour and whisk until it’s combined—let it bubble for a minute to cook off the raw flour taste.

Step 4: Add Milk for Creaminess

With the heat still on, slowly pour in the milk, whisking constantly to keep things smooth. Don’t rush—adding milk in small splashes helps keep the sauce lump-free. Bring to a gentle boil, then remove from the heat.

Step 5: Flavor and Cheese Time!

Stir in mustard powder, salt, pepper, and cayenne. Let it cool slightly, then gradually add in the shredded cheddar (reserving a generous cup for later). Stir until the cheese melts—slow and steady makes the smoothest sauce! Swirl in cream cheese, then fold in your luscious caramelized onions.

Step 6: Layer the Potatoes

Peel and thinly slice the potatoes—aim for about ⅛-inch slices so they cook evenly. Pat them dry to remove excess moisture.

Layer half the potatoes in your dish, pour over half your cheese sauce, then repeat with the rest of the potatoes and remaining sauce. Sprinkle the reserved cheddar over the top.

Step 7: Bake to Perfection

Cover the dish with foil and bake for 45 minutes. Uncover and bake for another 40 minutes until the potatoes are tender and the top is bubbling and golden. For an even deeper golden crust, broil at 400°F for a few minutes—just keep a close eye so it doesn’t burn.

Let the dish rest 5–10 minutes before serving to allow everything to set.

Pro Tips for Making the Recipe

Shred Your Own Cheese: Pre-shredded cheese contains anti-caking agents that can make your sauce grainy.
Slice Potatoes Evenly: Uniform slices ensure even cooking; use a mandoline if you have one.
Don’t Skip Seasoning: Potatoes soak up flavor—taste the sauce before layering to ensure it’s seasoned just right.
Watch the Broiler: Browning the top adds irresistible texture, but it can go from golden to burnt in seconds, so don’t walk away!

How to Serve

Cheesy Scalloped Potatoes are a standout side for any hearty main course. Pair them with roasted chicken, honey-glazed ham, or a simple green salad for balance. For a cozy weeknight, serve in generous bowls with steamed broccoli or roasted carrots on the side. They’re so rich and satisfying, they can even be enjoyed as the main attraction with a sprinkle of chives or fresh parsley on top for freshness and color.

Make Ahead and Storage

Storing Leftovers

Store any leftovers covered in the refrigerator for up to 4 days. The flavors develop even more overnight!

Freezing

Freeze individual portions or the whole cooled dish tightly wrapped in plastic and foil. For best texture, eat within 2 months. Thaw in the fridge overnight before reheating.

Reheating

Reheat covered in a 350°F oven until hot and bubbling, around 20–25 minutes. For crispness, uncover for the last 5 minutes. Microwave works for fast single servings, but the oven gives the best texture.

FAQs

Can I make Cheesy Scalloped Potatoes ahead of time?

Absolutely—assemble, cover, and bake for the first 45 minutes, then cool and refrigerate for up to 3 days. When ready to serve, top with the remaining cheese and finish baking until hot and bubbly.
What potatoes are best for scalloped potatoes?

Yukon Golds or Russets are ideal. Yukon Golds offer a naturally creamy texture and hold their shape, while Russets bring an extra-fluffy, tender bite.
Why did my cheese sauce turn grainy?

This usually happens if the cheese is added when the base is too hot, or if pre-shredded cheese is used. For the smoothest sauce, let the sauce cool briefly before stirring in freshly shredded cheese.
Can I make these gluten-free?

Absolutely! Replace the flour with a 1:1 gluten-free baking blend, or thicken the sauce with a cornstarch slurry added after the milk has been incorporated.

Final Thoughts

If you’re craving old-fashioned comfort with a major cheese upgrade, these Cheesy Scalloped Potatoes are sure to win everyone over. The simple step-by-step method, totally flexible ingredients, and unbeatable flavor mean it belongs in your regular rotation—and with all that creamy, melty goodness, you’ll look forward to leftovers. Give it a try this week—it might just become your new favorite way to enjoy potatoes!