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The Best Cheesy Scalloped Potatoes Recipe (Easy Holiday Side Dish)

Creamy cheesy scalloped potatoes baked until golden brown in a white rectangular baking dish with a silver serving spoon.

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These cheesy scalloped potatoes feature layers of tender potatoes baked in a rich, creamy cheddar cheese sauce. This comforting, from-scratch side dish is perfect for Thanksgiving, Christmas, Easter, Sunday dinner, or any special family meal.

Ingredients

Scale
  • 3 pounds Yukon Gold or russet potatoes, peeled and thinly sliced
  • 4 tablespoons unsalted butter
  • 1 small yellow onion, finely diced
  • 3 cloves garlic, minced
  • ¼ cup all-purpose flour
  • 2 cups whole milk
  • 1 cup heavy cream
  • 1 teaspoon kosher salt
  • ½ teaspoon freshly ground black pepper
  • ½ teaspoon garlic powder
  • ½ teaspoon onion powder
  • ¼ teaspoon smoked paprika
  • 2 cups freshly shredded sharp cheddar cheese, divided
  • ½ cup freshly grated Parmesan cheese
  • 1 tablespoon chopped fresh chives, for garnish

Instructions

  • Preheat the oven to 375°F. Lightly grease a 9-by-13-inch baking dish with butter or nonstick cooking spray.
  • Peel the potatoes and slice them into uniform ⅛-inch-thick rounds. Set aside.
  • Melt the butter in a large saucepan over medium heat. Add the diced onion and cook for 4 to 5 minutes, or until softened.
  • Add the garlic and cook for 30 seconds, stirring constantly.
  • Sprinkle the flour over the onions. Cook for 1 minute while stirring to remove the raw flour taste.
  • Slowly pour in the milk and heavy cream, whisking continuously until smooth.
  • Add the salt, black pepper, garlic powder, onion powder, and smoked paprika. Cook for 4 to 6 minutes, whisking frequently, until the sauce begins to thicken.
  • Remove the saucepan from the heat. Stir in 1½ cups of cheddar cheese and all the Parmesan cheese until melted and smooth.
  • Arrange half of the sliced potatoes in the prepared baking dish. Pour half of the cheese sauce evenly over the potatoes.
  • Add the remaining potatoes and cover them with the rest of the cheese sauce. Sprinkle the remaining ½ cup of cheddar cheese over the top.
  • Cover the baking dish tightly with aluminum foil. Bake for 50 minutes.
  • Remove the foil and bake for another 20 to 25 minutes, or until the potatoes are fork-tender and the top is bubbling and golden brown.
  • Let the scalloped potatoes rest for 10 minutes before serving. Garnish with chopped chives, if desired.

Notes

  • Slice the potatoes as evenly as possible so they cook at the same rate. A mandoline slicer works especially well.
  • Shred the cheese from a block for the smoothest sauce. Pre-shredded cheese contains anti-caking agents that can make the sauce grainy.
  • If the top begins to brown too quickly, loosely cover the baking dish with foil during the final few minutes.
  • The sauce will continue to thicken while the potatoes rest.
  • Yukon Gold potatoes create a creamy, buttery texture, while russet potatoes produce softer, more traditional scalloped potatoes.
  • For the best results, avoid rinsing the potatoes after slicing. Their natural starch helps thicken the cheese sauce.
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