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These Cheesy Scalloped Potatoes are rich, creamy, and perfectly layered with tender potato slices and a smooth, flavorful creamy cheese sauce with cheddar cheese. The perfect side dish for holiday dinners or family dinner, they’re a comforting classic side dish that always impresses.

A white casserole dish with a serving spoon scooping some potatoes out of it.

Cheesy Scalloped Potatoes Recipe

Scalloped potatoes are a classic side dish for family dinners, holiday dinners, and even potlucks & gatherings. What’s not to love about sliced potatoes layered in a casserole dish and layered in a creamy sauce – it’s cheesy goodness that everyone loves.

This potato side dish is sometimes also referred to as au gratin potatoes – same idea with layers of potatoes inside a baking pan and then it’s smothered in some sort of cream sauce.

A casserole dish with scalloped potatoes inside of it.

I always love making my cheesy scalloped potatoes for Easter and Thanksgiving dinner. They are so delicious alongside my Coca Cola Ham or this Crockpot Brown Sugar Ham.

You just can’t beat the tender soft potatoes that bakes in a homemade cheddar cheese sauce 🤍

Full List of Ingredients

Salted Butter
All-Purpose Flour
Half and Half
Dijon Mustard
Kosher Salt
Garlic Powder
Dried Rosemary
Shredded Sharp Cheddar Cheese : Shred the cheese from a block of cheese. I don’t recommend using bagged pre-shredded cheese in this recipe.
Russet Potatoes : The recipe calls for 2 pounds of potatoes that have been peeled and sliced very thin. I recommend using a mandolin sliver to do this (linked in the recipe card below).

How To Make Easy Cheesy Scalloped Potatoes (Printable Recipe Card)

Preheat the oven to 350 degrees F. Spray a 9×13-inch baking dish (or 3 QT baking dish) with nonstick cooking spray. Set aside.

In a saucepan, over medium heat, melt the butter.

Once the butter is melted, whisk in the flour and cook for 1 minutes (while whisking it very frequently).

Gradually whisk in the half and half, a little bit at a time, until smooth and mixed well. Let it cook for 3-5 minutes or until it’s thickened.

Stir in the dijon mustard, kosher salt, garlic powder, and dried rosemary.

Take the pan off the heat and stir in the shredded sharp cheddar cheese until the cheese has melted and it’s a smooth mixture.

Arrange the peeled and thinly sliced potatoes in the baking dish. Similar to rows of dominoes that have fallen over, that’s how the potatoes should be layered in the dish.

Evenly pour the cheese sauce over top the sliced potatoes in the baking dish. Sprinkle the remaining 1/2 cup shredded sharp cheddar cheese over top.

Cover the baking pan with aluminum foil and bake for 60 minutes. Remove the foil and bake for another 20-30 minutes or until golden brown, bubbly, and the potatoes are fork tender.

Let rest for 10 minutes at room temperature before serving. Enjoy!

How To Store Leftover Scalloped Potatoes

Store any leftovers in an airtight container, in the refrigerator, for up to 4 days. Reheat covered in the oven at 350 degrees F until warmed through, or warm individual portions in the microwave.

You can also make cheesy scalloped potatoes ahead of time; up to 24 hours. Prepare the dish as directed in the recipe card, and instead of baking it, cover the pan tightly with foil and refrigerate for up to 24 hours. Let the baking dish sit out at room temperature while the oven preheats. Bake right before serving as directed in the recipe.

Substitutions & Ingredient Notes

Salted Butter : Unsalted butter can be used with an added pinch of salt to balance the flavor.
Half and Half : A combination of equal parts milk (whole milk or 2%) and heavy cream will yield the same creamy consistency. I don’t recommend using another milk lower in fat than the half and half that the recipe calls for. Otherwise, the cheese sauce will be too thin and not thicken while baking.
Dijon Mustard : Stone ground mustard or yellow mustard can be used for a similar but milder taste.
Sharp Cheddar Cheese : Gruyere cheese or white cheddar cheese are suitable substitutes. I do recommend using sharp cheddar cheese for the best flavor, but you could also use medium cheddar or mild cheddar for a more subtle flavor.
Russet Potatoes : These are the best to use for scalloped potatoes because they maintain their texture and hold its shape, even after the longer cooking time in the cheesy sauce. However, another decent option are Yukon gold yellow potatoes; they have a creamier texture but will hold their shape relatively well.

Top Tips For Success

Slice The Potatoes Evenly & Thinly : I highly recommend using a mandolin slicer so that you can make consistent 1/8-inch slices. Even slicing ensures the potatoes cook at the same rate and prevents underdone, or overdone, layers of potato. You could also use a sharp knife to very thinly and evenly slice the potatoes.
Cook The Roux Properly : The roux is the melted butter + flour mixture in the saucepan. Let the butter melt fully before adding the flour. Once you add the flour, let it cook for a full minute, while stirring very frequently, before adding the liquid. Cooking for 1 minute removes any raw flour taste and gives the sauce a smoother consistency.
Add The Liquid Slowly : Gradually, a little bit at a time, add the half and half while whisking constantly. This prevents any lumps and achieves a silky, thick sauce.
Use Freshly Shredded Cheese : For best results buy a block of sharp cheddar cheese and use a box cheese grater to shred it yourself. Preshredded cheese often contains anti-caking agents that prevent smooth melting. Freshly shredded cheese makes the sauce creamier and smoother.