Creamy Scalloped Potatoes (Easy White Cheddar!)

This post is sponsored by the American Dairy Association, although all of my opinions are my own.

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Why This is the Best Scalloped Potatoes Recipe

Listen, I’ll be the first to admit I’m biased when it comes to potatoes. I love them in literally every form—mashed, roasted, fried, baked, you name it. But scalloped potatoes? They hold a special place in my heart. These white cheddar scalloped potatoes were my absolute favorite side dish growing up, and they still are today.

What makes this recipe different from other scalloped potatoes recipes is the homemade cheese sauce. I don’t just pour cream over potatoes and call it a day—I make a proper roux-based sauce that creates this incredibly creamy, velvety coating that clings to every single potato slice. It’s the same technique I use for my baked mac and cheese, and it works beautifully here.

I’ll be honest, I didn’t nail this recipe on the first try. The first time I made scalloped potatoes as an adult, I used evaporated milk and it came out…goopy. Not cute. The second time, I used russet potatoes and they never quite got tender enough. But the third time? I went back to what I know works: a good roux with whole milk and half-and-half, Yukon Gold potatoes (so much creamier!), and sharp white cheddar cheese. Perfection.

This is now my go-to recipe for Thanksgiving, Christmas, Easter, or any family dinner where I want to impress. The potatoes are fork-tender, the sauce is rich and creamy, and that sharp white cheddar adds just the right amount of cheesy flavor without being overwhelming.

What Makes These Scalloped Potatoes So Creamy

The secret to ultra-creamy scalloped potatoes is all about the sauce. Here’s what makes this recipe work:

A proper roux base: Starting with butter and flour creates a thick, smooth foundation that won’t separate or curdle during baking. This is miles better than just pouring cream over potatoes.

Combination of milk and half-and-half: Using both whole milk and half-and-half gives you richness without being too heavy. Heavy cream can make scalloped potatoes greasy, while milk alone can be too thin.

Sharp white cheddar cheese: The sharpness cuts through the richness and adds incredible flavor. White cheddar melts beautifully and doesn’t make the sauce look orange or artificial.

Yukon Gold potatoes: These are the secret weapon! Yukon Golds are naturally creamier and more buttery than russets. They also hold their shape better and cook more evenly.

Proper layering: Building layers of potatoes, sauce, and cheese ensures every bite is perfectly coated and flavorful.

What You’ll Need

For the Potatoes:

• Yukon Gold potatoes – 5-6 medium potatoes, peeled and thinly sliced. These are SO much better than russets for scalloped potatoes because they’re naturally creamy and don’t fall apart.
• Salt – For seasoning each layer of potatoes.

For the Cheese Sauce:

• Fresh chives – Adds a subtle onion flavor and looks beautiful. Scallions work too!
• Butter – Unsalted butter is best so you can control the salt level.
• All-purpose flour – Combined with butter to make the roux that thickens the sauce.
• Whole milk – The base of your creamy sauce.
• Half-and-half – Adds richness without being too heavy like heavy cream would be.
• White cheddar cheese – 3 cups freshly grated (don’t use pre-shredded—it has anti-caking agents that prevent smooth melting). Sharp white cheddar is ideal.
• Garlic powder – Adds savory depth.
• Onion powder – More subtle than fresh onions but adds great flavor.
• Cayenne pepper – Just a tiny pinch adds warmth without heat.
• Salt and black pepper – To taste.

How to Make White Cheddar Scalloped Potatoes

These creamy scalloped potatoes are easier to make than you think! The key is taking your time with the sauce.

Step 1: Prep Your Potatoes

Preheat your oven to 375°F and spray a 9×11-inch baking dish with non-stick cooking spray.

Peel your Yukon Gold potatoes (or leave the skins on for a more rustic look—totally your call). Slice them into thin, even rounds—about 1/8 to 1/4 inch thick. A mandoline slicer makes this super easy and ensures even cooking, but a sharp knife works too. Just try to keep the slices as uniform as possible so they cook evenly.

Pro tip: Place the sliced potatoes in a bowl of cold water while you make the sauce. This prevents them from oxidizing and turning brown.

Step 2: Make the Cheese Sauce (The Secret to Creamy Potatoes!)

In a medium saucepan over medium heat, melt the butter. Once it’s melted and starts to bubble, whisk in the flour. Keep whisking for about 1-2 minutes—this cooks out the raw flour taste. The mixture will look clumpy and paste-like. That’s perfect!

Slowly pour in the whole milk while whisking constantly. The mixture will be lumpy at first, but keep whisking and it will smooth out. Add the half-and-half and continue stirring. The sauce will start to thicken as it heats up—this usually takes 3-5 minutes.

Once the sauce is thick enough to coat the back of a spoon, add the garlic powder, onion powder, cayenne pepper, salt, and black pepper. Stir in 1/2 cup of the grated white cheddar cheese and whisk until it melts completely into the sauce. Finally, stir in the chopped chives. Remove from heat.

Pro tip: Taste your sauce at this point! It should be well-seasoned and flavorful because this is what’s coating your potatoes. Adjust salt and pepper if needed.

Step 3: Layer the Potatoes and Sauce

Drain your potato slices and pat them dry with a kitchen towel. This helps the sauce stick better.

Start building your layers:

• First layer: Arrange a single layer of potato slices in the bottom of your prepared baking dish, slightly overlapping. Sprinkle lightly with salt. Pour about 1/3 of the cheese sauce over the potatoes, making sure to coat them evenly. Sprinkle with about 1/2 cup of grated white cheddar.
• Second layer: Add another layer of potatoes, slightly overlapping again. Sprinkle with a little salt. Pour another 1/3 of the sauce over top and sprinkle with another 1/2 cup of cheese.
• Final layer: Add your remaining potatoes, pour the rest of the sauce over top, and finish with all the remaining white cheddar cheese (about 1 cup). Sprinkle extra chopped chives on top for color.

Step 4: Bake Uncovered

Here’s something important: bake these scalloped potatoes UNCOVERED. I learned this the hard way. If you cover them, they steam instead of bake, and the sauce stays too thin. Baking uncovered allows some of the liquid to evaporate, concentrates the flavors, and creates that slightly golden top.

Bake on the middle-lower rack for 40-50 minutes. The potatoes are done when they’re fork-tender (a fork slides through easily) and the top is golden and bubbly.

Step 5: Rest Before Serving

This is crucial! Let the scalloped potatoes rest for 10-15 minutes after removing them from the oven. This allows the sauce to thicken up even more and makes serving so much easier. If you try to serve them immediately, the sauce will be runny.

Cover loosely with foil to keep warm until ready to serve.

Expert Tips for Perfect Scalloped Potatoes

Use Yukon Gold potatoes, not russets. Trust me on this! I made scalloped potatoes with russets and they never quite got tender and creamy. Yukon Golds are naturally more buttery and cook more evenly.

Slice potatoes evenly. Uniform thickness = even cooking. Invest in a mandoline if you make scalloped potatoes often!

Make a proper roux. Don’t skip the butter and flour step! This creates a stable sauce that won’t separate or curdle.

Grate your own cheese. Pre-shredded cheese has anti-caking agents that prevent smooth melting. Freshly grated white cheddar melts like a dream.

Season each layer. A little sprinkle of salt on each potato layer seasons the dish throughout, not just on top.

Don’t overbake. Once the potatoes are fork-tender, they’re done. Overbaking makes them mushy.

Let them rest. That 10-15 minute rest time is essential for the sauce to thicken properly.

Bake uncovered. Covered = steamed and soupy. Uncovered = golden and perfect.

Scalloped Potatoes vs. Au Gratin Potatoes

People always ask me: what’s the difference between scalloped potatoes and au gratin potatoes? Here’s how I explain it:

Scalloped Potatoes:

• Made with a creamy white sauce (usually a roux-based sauce)
• Lighter in color and texture
• More about the creamy sauce coating the potatoes
• Usually includes less cheese (though my version has plenty!)
• Smooth, velvety texture

Au Gratin Potatoes:

• Typically made with heavy cream (no roux)
• LOTS of cheese—like, mountains of it
• Often has a crispy, browned cheese topping
• Denser and richer
• More cheese-forward flavor

Both are delicious! But if you want that ultra-creamy, saucy potato dish, scalloped potatoes are the way to go.

Make-Ahead Instructions

These white cheddar scalloped potatoes are perfect for making ahead, which is a lifesaver during the holidays!

Option 1 (Prep and Refrigerate): Assemble the entire dish up through Step 3 (layered and ready to bake), cover tightly with plastic wrap, and refrigerate for up to 24 hours. When ready to bake, remove from fridge and let sit at room temperature for 20-30 minutes, then bake as directed (you may need an extra 5-10 minutes since it’s cold).

Option 2 (Fully Bake and Reheat): Bake the scalloped potatoes completely, let cool, cover, and refrigerate for up to 3 days. Reheat covered at 350°F for 20-30 minutes until heated through.

Can you freeze scalloped potatoes? I don’t recommend it. The dairy sauce can separate when frozen and thawed, and the potato texture changes. These are best enjoyed fresh or refrigerated for a few days.

How to Store Leftovers

Store leftover scalloped potatoes covered in the refrigerator for up to 4 days. Reheat individual portions in the microwave or reheat the whole dish covered in a 350°F oven for 15-20 minutes.

Variations and Add-Ins

Once you master this base recipe, try these delicious variations:

Bacon Cheddar Scalloped Potatoes: Add 1 cup of cooked, crumbled bacon between the layers. Smoky and incredible!

Ham and Cheese Scalloped Potatoes: Layer in diced ham for a heartier side dish that could even be a main course.

Garlic Parmesan Scalloped Potatoes: Replace the white cheddar with Parmesan and add 2 cloves of minced fresh garlic to the sauce.

Herb Scalloped Potatoes: Add fresh thyme or rosemary to the sauce for an herby twist.

Gruyere Scalloped Potatoes: Use Gruyere cheese instead of white cheddar for a French-inspired version.

Extra Cheesy Scalloped Potatoes: Double the cheese. No judgment here!

What to Serve with Scalloped Potatoes

These creamy scalloped potatoes pair beautifully with:

• Holiday ham or turkey – The classic pairing for Thanksgiving and Christmas
• Prime rib or beef tenderloin – Perfect for a fancy dinner party
• Roasted chicken – An easy weeknight or Sunday dinner
• Pork chops or pork tenderloin – The creaminess complements pork beautifully
• Green beans or roasted vegetables – For a complete meal

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Commonly Asked Questions

Similar Potato Side Dishes

If you like recipes like these, you will love the recipes below:

• Garlic and Herb Grilled Potatoes
• Easy Mashed Potatoes
• Roasted Fingerling Potatoes
• Garlic and Tarragon Roasted Red Potatoes

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