If you’re looking for a comforting dish that combines creamy, cheesy goodness with the sweet depth of caramelized onions, this Cheesy Scalloped Potatoes with Caramelized Onions Recipe is your new best friend in the kitchen. Each bite offers tender, thinly sliced potatoes enveloped in a rich, ultra-cheesy sauce, perfectly balanced by the hearty, golden-brown onions that bring a hint of sweetness and a fantastic texture contrast. Whether you’re making it for a cozy family dinner or a special holiday feast, this recipe transforms humble ingredients into an unforgettable side that everyone will rave about.
Ingredients You’ll Need
The magic of this dish lies in its simple but essential ingredients, each chosen to build layers of flavor, creaminess, and color that make the dish shine. From the buttery richness that coats the potatoes to the sharpness of the cheddar cheese, every component plays a crucial role in creating the perfect harmony of taste and texture.
- Yukon Gold or Russet Potatoes (2.5 lbs): These starchy potatoes hold their shape beautifully while becoming tender and creamy.
- Butter (6 tablespoons, separated): Adds richness and helps caramelize the onions and build the sauce base.
- Olive Oil (1 tablespoon): Enhances caramelization with a subtle fruitiness and prevents sticking.
- Yellow Onion (1 large): Caramelized slowly to develop sweetness that complements the cheese sauce.
- Dried Thyme (1/2 teaspoon): Provides a gentle herbal note that deepens the flavor complexity.
- Garlic (2 cloves, minced): Adds savory depth to the creamy sauce without overpowering the other flavors.
- Flour (4 tablespoons): Thickens the sauce to creamy perfection without any lumps.
- Milk (3 cups): Creates the luscious base for the sauce, helping everything melt together smoothly.
- Shredded Orange Cheddar Cheese (3 1/2 cups, divided): Divine sharpness and melty texture that’s simply irresistible.
- Cream Cheese (2 tablespoons, softened): Adds extra creaminess and a slight tang to the cheese sauce.
- Mustard Powder (1/2 teaspoon): A subtle kick that brightens the overall flavor profile.
- Salt (1/2 teaspoon): Essential for balancing sweetness and enhancing all other flavors.
- Pepper (1/4 teaspoon): Lends gentle warmth without overwhelming the dish.
- Cayenne Pepper (a pinch): Adds just a whisper of heat to keep things exciting.
How to Make Cheesy Scalloped Potatoes with Caramelized Onions Recipe
Step 1: Prepare Ingredients
Start by preheating your oven to 350°F (175°C). While the onions begin their slow caramelization, measure and prepare the rest of the ingredients so everything is ready to go—this little prep work will make the cooking process feel smooth and enjoyable.
Step 2: Caramelize Onions
Slice the yellow onion into 1/4-inch strips and melt 2 tablespoons of butter with olive oil in a large skillet over medium-low heat. Toss in the onions and thyme, and patiently cook them for about 30 minutes, stirring often, until they become golden brown and irresistibly sweet. Set these aside—they will add an amazing depth of flavor and contrast in your scalloped potatoes.
Step 3: Make the Roux
Turn the heat up to medium and melt the remaining 4 tablespoons of butter in the same skillet. Add the minced garlic and cook for about a minute while scraping up all the lovely browned bits from the onions. Stir in the flour and whisk continuously for a minute until the raw flour taste disappears—this forms the thickening base for your sauce.
Step 4: Add Milk and Season
Slowly pour in the milk while whisking constantly to avoid lumps and create a smooth sauce. Bring the mixture to a gentle boil and then remove it from heat. Stir in mustard powder, salt, pepper, and just a pinch of cayenne to add complexity and a little warmth that will make the cheese pop.
Step 5: Add Cheese and Caramelized Onions
Let the sauce cool slightly before adding most of your shredded cheddar and the cream cheese. Blend the cheeses in gradually until melted and smooth, then fold in the caramelized onions—they infuse the sauce with their beautiful sweetness and texture, making this truly a standout Cheesy Scalloped Potatoes with Caramelized Onions Recipe.
Step 6: Slice Potatoes
While the sauce cools, peel and rinse the potatoes. Pat them dry to remove excess moisture and slice them thinly to about 1/8-inch thickness, ensuring they cook evenly and develop that tender, melt-in-your-mouth quality.
Step 7: Layer Potatoes and Sauce
Lightly grease a 9×13-inch baking dish with butter or oil. Layer half the potato slices on the bottom, then pour half the cheesy onion sauce over them. Repeat with the remaining potatoes and sauce, topping everything with the reserved cheddar for an irresistible golden crust.
Step 8: Bake and Broil
Cover the dish with foil and bake for 45 minutes to let the potatoes soften. Remove the foil and bake for another 40 minutes until the top is bubbly and beautifully golden. For an extra-special finish, broil for a few minutes to create a crisp, browned surface—just keep a close eye so it doesn’t burn.
Step 9: Rest Before Serving
Patience is key here. Let the dish rest for 5 to 10 minutes before serving; this helps the sauce thicken a little and makes slicing easier, ensuring every portion is perfect.
How to Serve Cheesy Scalloped Potatoes with Caramelized Onions Recipe
Garnishes
A sprinkle of freshly chopped parsley or chives adds a bright contrast and a pop of color to balance the richness of the dish. You can also add a dusting of smoked paprika or a drizzle of truffle oil for a gourmet touch that will wow your guests.
Side Dishes
This Cheesy Scalloped Potatoes with Caramelized Onions Recipe pairs wonderfully with roasted or grilled meats like chicken, beef, or pork. A crisp green salad with a tangy vinaigrette or steamed seasonal vegetables also complements the creamy potatoes, adding fresh texture and vibrant flavors to your meal.
Creative Ways to Present
For a festive look, bake the scalloped potatoes in smaller individual ramekins and serve as personalized sides. Alternatively, layer some crispy bacon or sautéed mushrooms within the layers to add an unexpected twist that takes this classic dish to the next level of deliciousness.
Make Ahead and Storage
Storing Leftovers
Store any leftover Cheesy Scalloped Potatoes with Caramelized Onions in an airtight container in the refrigerator for up to 3 days. The flavors often deepen overnight, making it even tastier the next day!
Freezing
This dish freezes well if you want to prepare it ahead of time. Wrap it tightly with plastic wrap and aluminum foil, then freeze for up to 2 months. Thaw overnight in the fridge before reheating to preserve the texture and taste.
Reheating
Reheat gently in a 350°F (175°C) oven until warmed through, usually about 20-25 minutes. To keep the top crisp, uncover during the last 10 minutes of reheating. Avoid microwaving if possible, as it can make the potatoes watery.
FAQs
Can I use a different type of cheese?
Absolutely! While the orange cheddar gives a rich, tangy flavor, you can experiment with Gruyere, Monterey Jack, or even smoked cheeses for unique variations.
Are russet potatoes better than Yukon Gold?
Both work well, but Yukon Gold have a creamier texture and a subtly buttery flavor, while Russets offer a fluffier, more classic scalloped potato consistency. Choose based on your preference.
Can I make this dish vegetarian?
Yes! This recipe is naturally vegetarian as long as you use vegetarian-friendly cheese and butter. It’s packed with flavor, so meat is definitely optional here.
How do I know when the potatoes are done baking?
They’re ready when you can easily pierce the potatoes with a fork and the sauce is bubbly and golden on top. The potatoes should feel tender, not firm or crunchy.
Can I add other vegetables?
Feel free to add thinly sliced mushrooms, spinach, or bell peppers layered in with the potatoes and cheese sauce for a colorful, nutritious boost.
Final Thoughts
This Cheesy Scalloped Potatoes with Caramelized Onions Recipe is the ultimate culinary hug—warm, indulgent, and satisfying. It’s the kind of dish that brings people together around the table and has everyone asking for seconds. I hope you give this recipe a try soon and discover just how simple ingredients can create something truly extraordinary. Trust me, once you make it, it’ll be a beloved classic in your home too!
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Cheesy Scalloped Potatoes with Caramelized Onions Recipe
- Prep Time: 30 minutes
- Cook Time: 1 hour 20 minutes
- Total Time: 1 hour 50 minutes
- Yield: 8 servings
- Category: Side Dish
- Method: Baking
- Cuisine: American
Description
This Cheesy Scalloped Potatoes recipe features thinly sliced Yukon Gold or Russet potatoes layered in a creamy, flavorful cheese sauce with caramelized onions. Baked to golden bubbly perfection and topped with extra cheddar cheese, this comforting side dish is perfect for family dinners and holiday gatherings.
Ingredients
Potatoes and Vegetables
- 2.5 lbs. Yukon Gold or Russet Potatoes (about 6 medium), peeled and sliced into 1/8-inch thick rounds
- 1 large yellow onion, sliced into 1/4-inch strings
- 2 cloves garlic, minced
Cheese Sauce
- 6 tablespoons butter, separated
- 1 tablespoon olive oil
- 1/2 teaspoon dried thyme
- 4 tablespoons flour
- 3 cups milk
- 3 1/2 cups shredded orange cheddar cheese, divided
- 2 tablespoons cream cheese, softened
- 1/2 teaspoon mustard powder
- 1/2 teaspoon salt
- 1/4 teaspoon pepper
- 1 pinch cayenne pepper
Instructions
- Prepare Ingredients: Preheat the oven to 350°F (175°C). Measure and prepare all ingredients so you have everything ready when needed, making the cooking process smoother and more efficient.
- Caramelize Onions: Melt 2 tablespoons of butter and 1 tablespoon olive oil in a large skillet over medium-low heat. Add the sliced onions and dried thyme, cooking them slowly for about 30 minutes while stirring often, until they turn golden brown and caramelized. Remove from heat and set aside.
- Make Roux: Increase the skillet heat to medium and melt the remaining 4 tablespoons of butter. Add minced garlic and cook for one minute, stirring to release the aromas and scrape up any browned bits from the pan. Whisk in the flour continuously for about one minute until the raw flour taste cooks out.
- Add Milk: Gradually pour in the milk while whisking constantly to avoid lumps and create a smooth, thick sauce. Bring the mixture to a gentle boil, then immediately remove from heat.
- Season Sauce: Stir in the mustard powder, salt, pepper, and cayenne pepper to enhance the flavor of the sauce.
- Add Cheese & Cream Cheese: Let the sauce cool slightly. Reserve one heaping cup of shredded cheddar cheese for topping later. Gradually mix the remaining cheddar cheese into the sauce until melted and smooth. Add the softened cream cheese and stir well, then fold in the caramelized onions.
- Slice Potatoes: While the sauce cools, peel, rinse, and pat dry the potatoes. Slice them thinly to about 1/8-inch thickness to ensure even cooking throughout.
- Layer Potatoes and Sauce: Lightly grease a 9×13-inch baking dish. Arrange half of the potato slices evenly on the bottom. Cover with half of the cheese and onion sauce. Repeat layering with the remaining potatoes and sauce. Sprinkle the reserved cheddar cheese evenly over the top.
- Bake: Cover the baking dish with foil and bake in the preheated oven for 45 minutes. Remove the foil and bake uncovered for an additional 40 minutes, until the potatoes are tender when pierced with a fork and the top is golden and bubbly.
- Broil and Rest: Optionally, broil the dish at 400°F for a few minutes to achieve a deeper golden brown crust—watch carefully to avoid burning. Remove from the oven and let rest for 5-10 minutes before serving. Garnish with fresh parsley if desired.
Notes
- Use Yukon Gold potatoes for a creamier texture, or Russet potatoes for a classic, fluffy slice.
- Caramelizing onions slowly enhances the flavor and adds sweetness to the dish.
- Slice potatoes evenly to ensure consistent cooking and texture.
- If you prefer a thicker sauce, you can cook it a few minutes longer before assembling.
- For extra richness, substitute part of the milk with half-and-half or cream.
- Covering the dish during most of baking helps the potatoes cook through while preventing the top from browning too soon.
- Broiling at the end adds a nice crisp texture on top, but keep a close eye to prevent burning.
- Letting the dish rest allows the sauce to set slightly and makes serving easier.
