
This classic scalloped potatoes recipe transforms humble ingredients into a decadent side dish that pairs perfectly with almost any protein. The layers of thinly sliced potatoes, caramelized onions, and crispy bacon create a comfort food masterpiece that's both impressive and satisfying.
I first made these scalloped potatoes for Easter dinner when I was hosting my in laws for the first time. The dish was such a hit that it's now requested at every holiday gathering our family has.
Ingredients
- Potatoes: 3 lbs thinly sliced Yukon or russet potatoes are the foundation of this dish. Yukon golds provide a buttery flavor while russets offer that classic fluffy texture.
- Bacon: 12 oz cooked and crumbled adds a smoky depth that elevates the entire dish. Look for thick cut bacon for the best texture and flavor impact.
- Onions: 2 medium thinly sliced add sweetness when caramelized. Choose yellow onions for their ability to develop rich flavor when cooked slowly.
- Butter: 4 tbsp unsalted creates the base for our velvety sauce. Using unsalted allows you to control the overall saltiness of the dish.
- All purpose flour: 4 tbsp works with butter to create a roux that thickens our sauce. Measure precisely for the perfect consistency.
- Whole milk: 3 cups brings richness to the sauce. Full fat milk ensures the creamiest result.
- Cheese: 8 oz combination of sharp cheddar and Gruyere. The cheddar provides familiar flavor while Gruyere adds nutty complexity and superior melting qualities.
- Olive oil: 2 tbsp extra virgin helps caramelize the onions without burning. Use a good quality oil for best flavor.
- Salt and pepper: to taste. Diamond Crystal kosher salt works beautifully in this recipe.
Step-by-Step Instructions
- Prep Your Baking Dish:
- Preheat your oven to 350°F and generously butter a 9×13 baking dish. Make sure to coat the corners well to prevent sticking. The right pan size ensures proper cooking throughout the layers.
- Caramelize Onions:
- Heat olive oil in a medium skillet over medium heat until shimmering. Add your thinly sliced onions with a pinch of salt and pepper. Cook them slowly for about 20 minutes stirring occasionally until they develop a rich golden brown color. This process creates sweet umami notes that permeate the entire dish.
- Prepare Bacon:
- In the same skillet cook bacon until perfectly crisp. The rendered fat will add flavor to the bacon itself. Drain on paper towels and crumble into small pieces that will distribute evenly throughout the potato layers.
- Create Béchamel Sauce:
- Melt butter in a saucepan over medium heat until foamy. Sprinkle flour over the melted butter and whisk continuously to form a smooth paste. Cook this roux for 2 full minutes to eliminate any raw flour taste. Gradually add milk in a steady stream while whisking constantly to prevent lumps. Bring the mixture to a gentle simmer and cook until it coats the back of a spoon about 2 to 3 minutes after it begins to simmer.
- Assemble Layers:
- In your prepared baking dish create the first layer using half the potatoes arranging them in slightly overlapping rows. Top with half the caramelized onions sprinkled evenly followed by half the bacon pieces. Add half your cheese in an even layer and pour half the sauce ensuring it seeps between the potato slices. Repeat with remaining ingredients creating a second identical layer.
- Bake to Perfection:
- Cover the dish tightly with foil which allows the potatoes to steam and soften. Bake covered for 1 hour then remove the foil and continue baking for 30 additional minutes. This uncovered time creates that irresistible golden brown top while ensuring the potatoes are completely tender. Test doneness by inserting a knife which should slide easily through all layers.
- Rest Before Serving:
- Allow the scalloped potatoes to rest for at least 10 minutes before serving. This resting period helps the sauce set slightly making it easier to serve neat portions while preventing burnt mouths.

The Gruyere cheese is truly the secret weapon in this recipe. I discovered its magic when I ran out of cheddar one Christmas and substituted with some leftover Gruyere from a fondue night. The nutty flavor and incredible melting quality transformed our family recipe into something truly special that everyone still talks about.
Frequently Asked Questions
- → What are the best potatoes for this dish?
Yukon Gold or russet potatoes are perfect as they hold their shape and absorb flavors well.
- → Can I make this dish ahead of time?
Yes, you can assemble it a day in advance. Cover and refrigerate, then bake when ready to serve.
- → Can I use a different cheese combination?
Absolutely! Mix and match cheeses like Monterey Jack, Parmesan, or Swiss to suit your taste.
- → What is the ideal baking time?
Bake covered for 1 hour at 350°F, then uncovered for 30 minutes until browned and bubbly.
- → How do I ensure evenly cooked potatoes?
Slice the potatoes uniformly thin and layer them evenly in the dish for consistent baking.