This easy Scalloped Potatoes Recipe comes together with ease thanks to a rich, creamy no-cook sauce. Tender layers of thinly sliced potatoes and melted cheese bake into a decadent side dish that pairs perfectly with everything from roasted chicken and ham to steak and holiday entrees.

Best Potatoes for Scalloped Potatoes

What potatoes are the best for scalloped potatoes? Short answer is, both russets and Yukon Golds make the best scalloped potatoes. Each performs or cooks slightly differently, and you’ll note that in this recipe, you can use either one. Russets have a higher starch content and will make the creamiest sauce, but both will yield a very deliciously cheesy and tender scalloped potato casserole.

Easy Scalloped Potatoes Recipe

It’s easy to see why scalloped potatoes continue to be a favorite side dish for gatherings of all kinds. While variations are endless, there’s something about the simple flavors and tender potatoes coupled with the easy decadent sauce that keeps them a regular rotation on our menu. The simplicity also allows you to make small adjustments in seasonings and herbs to suit your taste.

Scalloped potatoes aren’t a low calorie dish. They’re unapologetically rich and the ideal side dish for special occasions like the Easter, Christmas, Thanksgiving with turkey, special holiday gatherings, graduation parties, special occasions and entertaining. If you’ve only make Betty Crocker scalloped potatoes from a box, you owe it to yourself to make them from scratch at least once. Make homemade scalloped potatoes from scratch once and you’ll be hooked from the first bite.

Checkout this quick list of key ingredients you’ll need to make Southern Scalloped Potatoes: (Scroll down for the full printable recipe card.)

Potatoes – Three pounds russet potatoes or yukon gold potatoes peeled and sliced 1/8-inch thick.
Liquid – Heavy cream and half and half for the creamy sauce.
Seasonings– Salt, black pepper, granulated garlic, onion powder, Dijon mustard and ground nutmeg.
Cheese – Medium cheddar cheese and colby jack cheese for a melty cheesy flavor.
Cheese for the Topping – Parmesan cheese and reserved shredded cheese.
Garnish – Chopped fresh parsley for a fresh flavor and color.

How to Make the Best Cheesy Scalloped Potatoes Recipe

Heat Oven and Prepare Dish – Spray a 13×9 inch baking dish with cooking spray.
Prep the Potatoes – Thinly slice the potatoes using a box grater, food processor or mandolin.
Combine the Sauce Ingredients – Whisk together cream, half and half, salt, pepper, garlic, onion powder, Dijon and nutmeg until fully blended.
Combine the Cheese – Mix cheddar and Colby jack cheese together.
Assemble the Casserole – Layer potato slices on bottom of dish. Drizzle with cream sauce and cheese. Repeat layers ending with shredded cheese and Parmesan cheese.
Oven – Cover tightly with foil. Bake per the baking time in the recipe until potatoes are fork tender.
Serve – Allow to stand on counter for 10 minutes, then serve garnished with parsley.

Kitchen Equipment to Make Southern Scalloped Potatoes Recipe

13×9-inch baking dish or pan.
Chopping board and knife.
Measuring cups and spoons.
Medium bowl and whisk.
Cheese grater.
Food processor, mandolin or use the box grater to slice the potatoes. Did you know the slice option on the side of your box grater is perfect for slicing potatoes? That’s precisely how I made this dish using the box grater for the cheese and for slicing the potatoes, too.

Recipe Variations, Tips and Substitutions

Cheese – The difference between scalloped potatoes and potato gratin is basically cheese. Scalloped potatoes can be made with Swiss, Gruyere, gouda or any brand of sharp cheddar cheese that you enjoy. I chose to mix a custom cheese blend in this recipe.
No-Cook Sauce – The sauce for these potatoes is not cooked, so don’t expect the texture to be the same as a thick bechamel or cheese sauce. It’s perfectly decadent and simple, nonetheless. I don’t recommend using milk in place of half and half or heavy cream.
Fresh Herbs – You can use a variety of herbs in these potatoes. Fresh thyme, chives or even rosemary depending on the flavor direction you want to take.
Allow Stand Time for the Sauce to Thicken – The starch in the potatoes will help thicken the sauce and the stand time is necessary to allow the sauce to thicken further before serving. Don’t skip it.
To Peel or Not to Peel the Potatoes for Scalloped Potatoes? Traditional scalloped potatoes are peeled. It’s perfectly acceptable to leave the peel on, if you prefer. When using Yukon Golds, the peel is very thin, anyway. Go with your preference.
Overlap the Potatoes – When layering the potatoes in the baking dish, they should overlap, don’t leave gaps.
Use Freshly Grated Cheese – I highly recommend that you grate your own cheese for this dish for the best flavor.

Storage and Leftovers

Leftovers – Store leftover scalloped potatoes covered with plastic wrap, aluminum foil or in an airtight container chilled in the refrigerator for up to 3 days.
Reheating – Reheat in single portions on 50% power in the microwave or in a preheated 350°F oven until heated through. To prevent overbrowning, lay a piece of aluminum foil on top.
Freezer – You can freeze leftovers for up to 2 months. Thaw in the fridge and reheat just before serving.

More Potato Recipes to Make

Loaded Baked Potato Salad will go with steak, pork, chicken and more.
Au Gratin Potatoes are made completely from scratch.
Serve these Cheesy Potato Pancakes with a dollop of sour cream.
Slow Cooker Sweet Potato Casserole is ideal for those busy oven days.
Add these Potato Skins to your appetizer menu.
Crispy Baked Potato Wedges are an easy side dish that come together in no time.
Slow Cooker Baked Potato Casserole from The Magical Slow Cooker.

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