
Loaded Scalloped Potatoes are the ultimate in cheesy comfort food for gatherings or a special family dinner. With layers of creamy sauce, caramelized onions, crispy bacon, and plenty of melty cheese, every bite is loaded with savory flavor that takes this classic side dish to unforgettable heights.
I still remember bringing this dish to a holiday dinner and the entire casserole vanished in record time. Now it is my go-to for potlucks because there are never any leftovers to bring home.
Ingredients
- Extra virgin olive oil: Adds subtle flavor and helps onions caramelize deeply Choose a high-quality oil for the best taste
- Onions: Sliced thin and caramelized for sweetness and depth Look for firm onions without blemishes
- Bacon: Cooked crisp and crumbled for smoky savory crunch Choose thick cut bacon for maximum flavor
- Unsalted butter: Forms the base of the roux Use real butter for richness
- All purpose flour: Thickens the sauce successfully Sift to avoid lumps in the sauce
- Whole milk: Makes the sauce luscious Choose full fat for best results and creaminess
- Potatoes: Thinly sliced so they cook through Choose Yukon or russet for the perfect texture
- Cheese: A mix of sharp cheddar and Gruyere melts beautifully and adds tang Try to grate your own cheese for best melt and flavor
- Salt and pepper: Brings all the flavors together Use freshly cracked pepper and kosher salt if possible
Step by Step Instructions
- Prepare the Pan:
- Butter a 9x13 or deep square baking dish to prevent sticking and ensure easy serving
- Caramelize the Onions:
- Heat olive oil in a skillet over medium heat then add sliced onions season with salt and pepper Cook slowly stirring now and then until the onions turn golden and are deeply fragrant about 20 minutes Set aside
- Cook the Bacon:
- Wipe out your skillet and add the bacon Cook over medium heat until crisp then drain on paper towels and crumble Set aside If you want to save time bake the bacon on a sheet pan while onions are cooking
- Make the Cream Sauce:
- Melt butter in the same skillet over medium heat Whisk in the flour steadily to make a smooth roux Let this cook for about 2 minutes to remove raw flour flavor Gradually whisk in the whole milk until smooth Bring to a gentle simmer and let thicken for 3 minutes Remove from heat
- Layer the Casserole:
- Arrange half of the sliced potatoes in the baking dish Top with half the caramelized onions half the bacon half the cheese and half the cream sauce Repeat the layering with remaining ingredients
- Bake:
- Cover with foil and bake for 1 hour at 350F Uncover and bake an additional 30 minutes until potatoes are completely tender and the top is golden Allow to rest for 10 minutes before serving so the sauce sets

Gruyere cheese is always my favorite element in this recipe Its earthy nutty flavor just melts into every layer making the casserole ooze with richness. My grandma started using Gruyere when I was little and now I can never make scalloped potatoes without it.
Storage Tips
Let the scalloped potatoes cool completely before covering and refrigerating Leftovers will keep for up to four days Reheat in the oven covered with foil to preserve moisture or microwave individual servings
Ingredient Substitutions
Swap Yukon potatoes for russet if needed Both hold their shape nicely
Feel free to use any cheese you have such as mozzarella Monterey Jack or Swiss
For a vegetarian version leave out the bacon and add sautéed mushrooms for equal savory satisfaction
Serving Suggestions
Serve hot as a side with roasted meats grilled chicken or even a holiday ham These potatoes also make an unexpectedly delicious brunch item sided with eggs and fruit

Cultural Context
Scalloped potatoes originated in Europe and have long been loved in American home kitchens Their signature creamy sauce and golden crust are beloved for family gatherings and celebratory tables across generations
Recipe FAQs
- → Can I use different types of cheese?
Absolutely! Sharp cheddar and Gruyere add depth, but mozzarella, Swiss, or jack cheese also work well.
- → How can I make this dish ahead of time?
Assemble the potato layers, cover tightly, and refrigerate. Bake when ready to serve, adding extra time as needed.
- → Is it possible to omit bacon for a vegetarian version?
Yes, simply leave out the bacon or substitute with sautéed mushrooms for added umami flavor.
- → What potatoes work best for this dish?
Yukon Gold or russet potatoes are ideal due to their texture and ability to hold up during baking.
- → Why are caramelized onions included?
They bring a gentle sweetness that balances the smoky bacon and pungent cheese, enhancing overall flavor.
- → How do I store leftovers?
Keep cooled portions in an airtight container in the refrigerator for up to four days. Reheat before serving.