
This comforting cheesy scalloped potato recipe has been my go-to side dish for family gatherings and holiday meals for years. The combination of two potato varieties creates the perfect texture, while the homemade cheese sauce takes this classic dish to a whole new level of deliciousness.
I first made these scalloped potatoes for Easter dinner several years ago, and they've become the most requested side dish at every family gathering since. Even my picky nephew asks for seconds!
Ingredients
- Russet Potatoes: create the perfect starchy base that helps thicken the sauce as it bakes
- Yukon Gold Potatoes: add a buttery flavor and creamy texture that contrasts beautifully with the russets
- Sweet Onion: provides subtle sweetness that balances the rich cheese sauce
- Butter: forms the foundation of the roux that thickens our sauce
- Garlic: adds aromatic depth that elevates the entire dish
- All Purpose Flour: works with butter to create a silky roux for thickening
- Onion Powder: intensifies the onion flavor throughout the dish
- Smoked Paprika: adds a subtle smoky note that complements the sharp cheese
- Dried Parsley: brings a hint of herbal freshness
- Chicken Broth: adds savory depth to the sauce better than water alone
- Milk: creates the creamy base for our cheese sauce
- Sharp Cheddar: provides bold cheese flavor and beautiful golden color
- White Cheddar: adds complexity and creaminess to the cheese blend
Step-by-Step Instructions
- Prepare the Baking Dish:
- Preheat your oven to 400 degrees and spray a 9x13 inch casserole dish thoroughly with cooking spray or olive oil. Make sure to get the corners and sides to prevent sticking.
- Create the Roux:
- Melt butter in a large skillet over medium low heat. Once fully melted, add minced garlic and cook for exactly 1 minute while stirring constantly to prevent burning. The garlic should become fragrant but not brown. Gradually whisk in flour, cooking for 3 to 4 minutes while whisking continuously. This cooking time is crucial to remove the raw flour taste.
- Season the Sauce:
- Add onion powder, smoked paprika, dried parsley, salt and fresh ground black pepper to your roux, whisking to combine. These seasonings infuse the base of your sauce with flavor before adding any liquids.
- Create the Cheese Sauce:
- Slowly pour in chicken broth and milk, alternating between the two while whisking constantly to prevent lumps. Simmer the mixture for 5 minutes until slightly thickened. Reduce heat to low and gradually add 1.5 cups sharp cheddar and 0.75 cup white cheddar, whisking until completely melted and smooth.
- Layer the Casserole:
- Arrange half of the sliced potatoes and half of the onions in the prepared casserole dish. Pour half of the cheese sauce evenly over the potatoes. Add the remaining potatoes and onions, then pour the remaining cheese sauce on top. Sprinkle the reserved cheeses over the entire casserole.
- Bake to Perfection:
- Cover the dish with foil and bake for 30 minutes. This initial covered baking allows the potatoes to steam and begin softening. Remove the foil and continue baking for another 30 minutes until the top is beautifully golden brown and the edges are bubbling.

The smoked paprika is my secret ingredient in this recipe. My grandmother always used regular paprika in her scalloped potatoes, but when I switched to the smoked variety, everyone immediately noticed the subtle difference. It adds just enough complexity without overpowering the cheese flavor.
Make Ahead Tips
These cheesy scalloped potatoes are perfect for preparing in advance. Assemble the entire casserole up to 24 hours before baking, cover tightly with foil, and refrigerate. When ready to bake, allow the dish to sit at room temperature for 30 minutes before placing in the oven. You may need to add an extra 10 minutes to the covered baking time if the casserole is still cold from the refrigerator.
Cheese Variations
While the combination of sharp cheddar and white cheddar creates a perfect balance of flavor and creaminess, this recipe is incredibly adaptable to different cheese combinations. For a more complex flavor profile, try substituting Gruyère for the white cheddar. It adds a nutty depth that's wonderful with potatoes. Monterey Jack creates a super creamy melt, while adding a small amount of Parmesan to the topping gives extra crispiness to the browned top.
Serving Suggestions
These cheesy scalloped potatoes pair beautifully with almost any protein. They're exceptional alongside a holiday ham or roast beef. For weeknight dinners, serve with roasted chicken or grilled steak. The rich, creamy texture also works wonderfully with simply prepared vegetables like roasted asparagus or a crisp green salad with vinaigrette to balance the richness of the potatoes.

Frequently Asked Questions
- → What type of potatoes work best for cheesy scalloped potatoes?
Russet and Yukon Gold potatoes are ideal as they hold their shape well while baking and offer a buttery texture.
- → Can I use pre-shredded cheese for this dish?
It's best to use freshly grated cheese as it melts better and offers a fresher flavor compared to pre-shredded options.
- → How thin should the potatoes be sliced?
Slice the potatoes about 1/8 inch thick to ensure they cook evenly and absorb the creamy sauce properly.
- → How can I substitute the cheese in this dish?
You can use other types of cheese like Gruyere, Fontina, or Monterey Jack for a different flavor profile if cheddar isn’t available.
- → Why should I cover the dish with foil initially?
Covering the dish lets the potatoes steam and absorb the sauce. Uncover later for a golden and bubbly top layer.