This creamy and cheesy scalloped potatoes recipe is the ultimate comfort food, perfect as a side dish for holidays, family dinners, or potlucks. Made with Yukon Gold potatoes, caramelized onions, and layers of rich cheddar cheese, this dish is easy to prepare and guaranteed to impress. Discover how to make this classic dish with simple steps and tips for the best results.

Ingredients
- 6 tablespoons butter, divided
- 1 tablespoon olive oil
- 1 large yellow onion
- ½ teaspoon dried thyme
- 2 cloves garlic, minced
- 4 tablespoons flour
- 3 cups milk
- 3 ½ cups shredded orange cheddar cheese, divided
- 2 tablespoons cream cheese, softened
- ½ teaspoon mustard powder
- ½ teaspoon salt
- ¼ teaspoon pepper
- 1 pinch cayenne pepper
- 2.5 lbs. Yukon Gold Potatoes (about 6 medium potatoes)
Instructions
- Preheat the Oven: Preheat your oven to 350°F (175°C).
- Tip: While the onions caramelize, prepare and measure your remaining ingredients.
- Caramelize the Onions:
- Cut the onion into ¼-inch strings.
- In a large skillet, melt 2 tablespoons butter with olive oil over medium-low heat.
- Add onions and thyme, stirring occasionally. Let cook for about 30 minutes until caramelized and golden brown. Remove from heat and set aside.
- Make the Roux:
- Increase heat to medium. Add the remaining 4 tablespoons of butter to the skillet and stir in the minced garlic. Cook for 1 minute.
- Add the flour and whisk continuously for 1 minute until the flour loses its raw smell.
- Add the Milk:
- Gradually add the milk in small increments, whisking to combine. Avoid adding too much at once to prevent thinning the roux. Bring the mixture to a boil, then remove from heat.
- Season and Add Cheese:
- Stir in mustard powder, salt, pepper, and cayenne. Let the roux cool slightly.
- Reserve 1 heaping cup of cheddar cheese. Gradually add the remaining cheese, stirring until smooth. Stir in the cream cheese until fully incorporated. Mix in the caramelized onions.
- Prepare the Potatoes:
- Peel, rinse, and pat dry the potatoes. Slice them thinly and evenly, about ⅛-inch thick.
- Assemble the Dish:
- Lightly grease a 9×13-inch baking dish. Layer half of the sliced potatoes evenly in the dish. Top with half of the cheese sauce.
- Add the remaining potato slices and pour over the rest of the cheese sauce. Sprinkle the reserved cheddar cheese on top.
- Bake:
- Cover the dish with foil and bake for 45 minutes at 350°F. Remove the foil and bake for an additional 40 minutes, or until the potatoes are tender.
- Optional: Broil at 400°F for a few minutes until the top is golden brown. Monitor closely to avoid burning.
- Serve:
- Allow the dish to rest for 5-10 minutes. Garnish with fresh parsley if desired and serve warm.
Why You’ll Love This Recipe
- Creamy and Cheesy: Every bite is packed with rich, cheesy goodness.
- Comforting: Perfect for family dinners or special occasions.
- Customizable: Easily tweak ingredients to suit your taste.
- Make-Ahead Friendly: Prepare in advance and bake when ready.
Tips
- Cheese: Use high-quality cheddar for the best flavor and texture.
- Consistency: Slice potatoes thinly and evenly to ensure they cook uniformly.
- Prep Ahead: Caramelize onions and prepare the cheese sauce in advance to save time.
- Avoid Graininess: Let the roux cool slightly before adding cheese to prevent it from separating.
Variations and Substitutions
- Cheese Options: Swap cheddar for Gruyère, Parmesan, or Monterey Jack.
- Herbs: Add rosemary or parsley for extra flavor.
- Vegetarian Option: Add sautéed mushrooms or spinach between potato layers.
- Lighter Version: Use low-fat milk and reduce the butter.
FAQs
Can I use a different type of potato?
- Yes, Russet or red potatoes work well, but Yukon Gold potatoes yield the creamiest texture.
Can I make this ahead of time?
- Absolutely. Assemble the dish, cover, and refrigerate up to 24 hours before baking.
What’s the best way to reheat leftovers?
- Reheat in the oven at 350°F, covered with foil, until warmed through.
Serving Suggestions
- Pair with roasted chicken, ham, or grilled vegetables for a complete meal.
- Serve as a side dish at holiday gatherings or potlucks.
Suggestions
- Garnish with freshly chopped parsley or chives for a pop of color and flavor.
- Add crispy bacon bits or pancetta for an indulgent twist.
- Sprinkle breadcrumbs on top before baking for a crunchy topping.
Cheesy Scalloped Potatoes
8
servings10
minutes1
hour40
minutesIngredients
6 tablespoons butter, divided
1 tablespoon olive oil
1 large yellow onion
½ teaspoon dried thyme
2 cloves garlic, minced
4 tablespoons flour
3 cups milk
3 ½ cups shredded orange cheddar cheese, divided
2 tablespoons cream cheese, softened
½ teaspoon mustard powder
½ teaspoon salt
¼ teaspoon pepper
1 pinch cayenne pepper
2.5 lbs. Yukon Gold Potatoes (about 6 medium potatoes)
Directions
- Preheat the Oven: Preheat your oven to 350°F (175°C).
- Tip: While the onions caramelize, prepare and measure your remaining ingredients.
- Caramelize the Onions:
- Cut the onion into ¼-inch strings.
- In a large skillet, melt 2 tablespoons butter with olive oil over medium-low heat.
- Add onions and thyme, stirring occasionally. Let cook for about 30 minutes until caramelized and golden brown. Remove from heat and set aside.
- Make the Roux:
- Increase heat to medium. Add the remaining 4 tablespoons of butter to the skillet and stir in the minced garlic. Cook for 1 minute.
- Add the flour and whisk continuously for 1 minute until the flour loses its raw smell.
- Add the Milk:
- Gradually add the milk in small increments, whisking to combine. Avoid adding too much at once to prevent thinning the roux. Bring the mixture to a boil, then remove from heat.
- Season and Add Cheese:
- Stir in mustard powder, salt, pepper, and cayenne. Let the roux cool slightly.
- Reserve 1 heaping cup of cheddar cheese. Gradually add the remaining cheese, stirring until smooth. Stir in the cream cheese until fully incorporated. Mix in the caramelized onions.
- Prepare the Potatoes:
- Peel, rinse, and pat dry the potatoes. Slice them thinly and evenly, about ⅛-inch thick.
- Assemble the Dish:
- Lightly grease a 9×13-inch baking dish. Layer half of the sliced potatoes evenly in the dish. Top with half of the cheese sauce.
- Add the remaining potato slices and pour over the rest of the cheese sauce. Sprinkle the reserved cheddar cheese on top.
- Bake:
- Cover the dish with foil and bake for 45 minutes at 350°F. Remove the foil and bake for an additional 40 minutes, or until the potatoes are tender.
- Optional: Broil at 400°F for a few minutes until the top is golden brown. Monitor closely to avoid burning.
- Serve:
- Allow the dish to rest for 5-10 minutes. Garnish with fresh parsley if desired and serve warm.
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