Cheesy Scalloped Potatoes

This cheesy scalloped potatoes recipe features tender sliced potatoes baked in a rich, creamy cheese sauce with caramelized onions and sharp cheddar. Perfect as a comforting side dish, it’s ideal for holiday meals, family dinners, or any occasion that calls for a classic potato casserole. Made with simple ingredients like Yukon Gold potatoes, garlic, and cream cheese, this baked scalloped potatoes recipe delivers smooth texture and bold flavors. Easy to prepare and bake, it pairs well with roasted meats, grilled chicken, or fresh vegetables for a satisfying and hearty meal.

Ingredients

• 6 tablespoons butter, divided
• 1 tablespoon olive oil
• 1 large yellow onion, sliced into ¼-inch strips
• 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 black pepper
• 1 pinch cayenne pepper
• 2.5 lbs Yukon Gold or Russet potatoes (about 6 medium), peeled and thinly sliced

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Instructions

1. Preheat Oven:
   Set your oven to 350°F (175°C).
2. Caramelize the Onions:
   In a large skillet over medium-low heat, melt 2 tablespoons of butter with the olive oil. Add the sliced onions and thyme. Cook slowly, stirring occasionally, for about 30 minutes until the onions are deeply browned and caramelized. Remove from heat and set aside.
3. Make the Roux:
   Increase the heat to medium. Add the remaining 4 tablespoons of butter to the skillet along with the garlic. Cook for 1 minute, scraping the bottom and sides of the pan with a silicone spatula to loosen any browned bits. Sprinkle in the flour and whisk continuously for about 1 minute until the raw flour smell disappears.
4. Add Milk Gradually:
   Slowly pour in the milk, whisking constantly to blend smoothly. Avoid adding the milk too quickly to prevent the sauce from becoming too thin. Bring the mixture to a boil, then remove from heat.
5. Season the Sauce:
   Stir in mustard powder, salt, pepper, and cayenne. Mix well.
6. Incorporate Cheese and Onions:
   Allow the sauce to cool slightly, then gradually add all but 1 cup of the shredded cheddar cheese, stirring gently to avoid graininess. Mix in the cream cheese until smooth, then fold in the caramelized onions.
7. Prepare Potatoes:
   Peel and rinse the potatoes. Slice them evenly about 1/8-inch thick.
8. Assemble the Casserole:
   Lightly grease a 9 x 13-inch baking dish. Layer half of the sliced potatoes evenly on the bottom. Pour half of the cheese sauce over the potatoes. Repeat with the remaining potatoes and cheese sauce. Sprinkle the reserved 1 cup of cheddar cheese evenly over the top.
9. Bake:
   Cover the dish with foil and bake for 45 minutes. Remove the foil and bake uncovered for an additional 40 minutes or until the potatoes are tender and the top is golden.
10. Optional Broil:
    For a crispier top, broil the potatoes at 400°F for a few minutes, watching closely to avoid burning.
11. Rest and Serve:
    Let the casserole sit for 5-10 minutes before serving. Garnish with fresh parsley if desired.

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Why You’ll Love This Recipe

• Creamy, cheesy sauce with perfectly tender potatoes.
• Slow-caramelized onions add a deep, rich flavor.
• A comforting classic side dish ideal for holidays or family dinners.
• Uses simple, wholesome ingredients you likely have on hand.

Tips

• Slice potatoes uniformly for even cooking.
• Cook onions slowly over low heat for best caramelization.
• Add cheese gradually to prevent sauce separation.
• Let the dish rest after baking to thicken the sauce.

Variations and Substitutions

• Substitute milk with half-and-half or heavy cream for richer flavor.
• Use Gruyère or Monterey Jack cheese for a different cheese profile.
• Add cooked bacon or ham for a hearty twist.
• Swap Yukon Gold for red potatoes or sweet potatoes.

FAQs

Can I prepare this dish ahead of time?

• Yes, assemble it a day in advance and refrigerate. Bake just before serving.

What if I don’t have cream cheese?

• You can omit it or substitute with sour cream for tanginess.

Can I make this gluten-free?

• Use gluten-free flour or cornstarch to thicken the sauce.

Serving Suggestions

• Serve alongside roasted meats or grilled chicken for a complete meal.
• Pair with steamed green vegetables for balance.
• Great for holiday dinners or weekend gatherings.

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This cheesy scalloped potatoes recipe combines creamy cheese sauce and tender potatoes with caramelized onions for a flavorful and satisfying side dish everyone will love.