Easy Scalloped Potatoes with Mushroom Soup

If you ask me, scalloped potatoes are one of those dishes that just makes everyone happy.

This comforting side dish combines tender potato slices with a creamy mushroom sauce that’s loaded with melted cheese. Two types of cheese melt together with condensed mushroom soup to create a rich, satisfying sauce.

It’s layered with bacon bits and onions for extra flavor, then baked until the potatoes are fork-tender. The combination of Colby Jack and cheddar gives you that perfect cheesy pull in every bite.

It’s a go-to recipe for family dinners and potlucks, the kind of dish that disappears fast from the table.

SAVE NOW

What Kind of Potatoes Should I Use?

For scalloped potatoes, you’ll want to reach for russet or Yukon gold potatoes since they hold their shape well during baking and have the right amount of starch. Russets give you a fluffier, more traditional texture, while Yukon golds will be a bit creamier and buttery. Avoid waxy potatoes like red potatoes or new potatoes for this recipe, as they can turn out a bit gummy in the creamy sauce. Whatever you choose, try to pick potatoes that are similar in size so they cook evenly, and slice them about 1/8 to 1/4 inch thick for the best results.

SAVE NOW

Options for Substitutions

This recipe is pretty forgiving when it comes to swaps, so feel free to work with what you have:

• Potatoes: Russet potatoes are classic for scalloped potatoes because they hold their shape well, but you can use Yukon golds for a creamier texture. Just slice them about 1/8 inch thick either way.
• Cream of mushroom soup: If you’re out of mushroom soup, cream of chicken or cream of celery work just fine. You can also make a quick substitute by mixing 1 cup of milk with 3 tablespoons of flour and adding some sautéed mushrooms.
• Bacon bits: Real bacon strips work great – just cook and crumble about 4-5 strips. You can also leave the bacon out completely for a vegetarian version.
• Sour cream: Plain Greek yogurt makes a good swap for sour cream, or you can use cream cheese (soften it first and mix it in well).
• Colby jack and cheddar: Any melting cheese works here – try Monterey jack, Gruyere, or even mozzarella. You can also use 2 cups of just one type of cheese instead of mixing two.
• Milk: Heavy cream makes this dish richer, or use half-and-half for something in between. In a pinch, even whole milk works fine.

Watch Out for These Mistakes While Baking

The biggest mistake you can make with scalloped potatoes is cutting your potato slices unevenly, which leads to some pieces turning mushy while others stay crunchy – aim for consistent 1/8 to 1/4 inch slices using a mandoline or sharp knife for the best results.

Don’t skip the step of soaking your sliced potatoes in cold water, as this removes excess starch that can make your casserole gummy instead of creamy.

When making the sauce, be patient and whisk constantly over medium heat to avoid lumps in your flour mixture, and make sure to let it thicken properly before adding the sour cream.

Finally, resist the urge to crank up the oven temperature to speed things along – potatoes need that full 50-60 minutes at 350°F to become tender all the way through, and covering the dish with foil for the first 30 minutes helps them cook evenly without the cheese burning.

SAVE NOW

What to Serve With Scalloped Potatoes?

Scalloped potatoes are pretty rich and filling, so they pair best with simple proteins like roasted chicken, baked ham, or grilled pork chops. A crisp green salad with a light vinaigrette helps balance out all that creamy goodness and adds some freshness to your plate. If you’re serving this for a holiday meal or Sunday dinner, steamed green beans or roasted asparagus make great veggie sides that won’t compete with the potatoes. Since this dish already has bacon and cheese baked in, you really don’t need much else to make it a complete meal.

Storage Instructions

Store: Leftover scalloped potatoes keep really well in the fridge. Just cover the dish tightly with foil or transfer to an airtight container, and they’ll stay good for up to 4 days. The flavors actually get even better the next day once everything has had time to meld together.

Freeze: You can freeze scalloped potatoes for up to 2 months, though the texture might change slightly since potatoes can get a bit grainy when frozen. Let them cool completely first, then wrap the dish well in plastic wrap and foil, or portion into freezer-safe containers.

Reheat: Warm them up in a 350°F oven covered with foil for about 20-25 minutes, or until heated through. You can also microwave individual portions, but the oven method keeps them creamier and prevents the edges from drying out.

Estimated Nutrition

Estimated nutrition for the whole recipe (without optional ingredients):

• Calories: 2300-2500
• Protein: 70-85 g
• Fat: 130-145 g
• Carbohydrates: 200-220 g

Ingredients

For the potatoes:

• 7-8 medium potatoes
• 1.5 cups colby jack (freshly shredded for better melting)
• 1.5 cups mild cheddar (I prefer Tillamook for a smoother melt)

For the soup sauce:

• 1/2 cup onions (finely diced into 1/4-inch pieces)
• 1/3 cup bacon bits
• 4 tbsp butter (I use Kerrygold for a richer sauce)
• 4 tbsp flour
• 1.25 cups milk
• 1 can condensed mushroom soup (I use Campbell’s for the classic flavor)
• 1 tsp celery seeds
• 1.5 tsp garlic powder
• 1 tsp salt
• 1/2 tsp pepper
• 1/4 tsp smoked paprika
• 3/4 cup sour cream (full-fat gives the best creamy texture)

Step 1: Prepare Mise en Place and Preheat Oven

• 7-8 medium potatoes
• 1/2 cup onions, finely diced
• 1.5 cups colby jack cheese, shredded
• 1.5 cups mild cheddar cheese, shredded

Preheat your oven to 350°F.

While it heats, peel and slice the potatoes into 1/8 to 1/4 inch thick rounds—uniform thickness ensures even cooking.

Place the sliced potatoes immediately into a bowl of cold water to prevent oxidation and remove excess starch, which helps them cook more evenly.

Finely dice the onions into 1/4-inch pieces and shred both the Colby Jack and mild cheddar cheeses using a box grater or food processor; freshly shredded cheese melts much more smoothly than pre-shredded varieties.

Grease a 9×13 inch baking dish lightly with butter or oil, and gather all remaining ingredients and equipment so everything is ready for assembly.

Step 2: Build the Creamy Mushroom Sauce

• 4 tbsp butter
• 1/2 cup onions, finely diced
• 1/3 cup bacon bits
• 4 tbsp flour
• 1.25 cups milk
• 1 can condensed mushroom soup
• 1 tsp celery seeds
• 1.5 tsp garlic powder
• 1 tsp salt
• 1/2 tsp pepper
• 1/4 tsp smoked paprika
• 3/4 cup sour cream

In a large saucepan, melt the butter over medium heat, then add the diced onions and cook for 2-3 minutes until softened and fragrant.

Add the bacon bits and stir to combine.

Sprinkle the flour over the mixture and stir constantly for 1-2 minutes to create a roux, cooking out the raw flour taste while building a slight golden color.

Gradually whisk in the milk and condensed mushroom soup, stirring constantly to prevent lumps from forming.

Once the mixture is smooth and begins to simmer gently, add the celery seeds, garlic powder, salt, pepper, and smoked paprika, stirring to distribute the spices evenly.

Remove from heat and stir in the sour cream—I like to do this off the heat to keep the sauce silky smooth without any risk of curdling.

Step 3: Drain Potatoes and Assemble Casserole Layers

• 7-8 medium potatoes, drained and patted dry
• creamy mushroom sauce from Step 2
• 1.5 cups combined shredded cheese blend

Drain the soaked potatoes thoroughly and pat them dry with a kitchen towel—removing excess moisture helps them brown slightly and prevents a watery final dish.

Begin layering in the prepared baking dish: spread 1/3 of the dried potatoes in an even layer on the bottom.

Pour 1/2 cup of the shredded cheese blend over the potatoes, then add half of the creamy mushroom sauce from Step 2, spreading it evenly.

Add the next 1/3 of potatoes in another layer, followed by 1/2 cup of cheese.

Top with the remaining mushroom sauce, then finish with the final 1/3 of potatoes.

Sprinkle the remaining 1/2 cup of cheese over the top—this creates a golden, crusty cheese layer on top while keeping the interior creamy.

Step 4: Bake Until Potatoes Are Tender

Place the assembled casserole in the preheated 350°F oven and bake for 50-60 minutes until the potatoes are completely tender when pierced with a fork and the top is golden brown.

The exact time depends on how thick you sliced the potatoes and your oven’s characteristics.

About halfway through baking, I like to check that the sauce is bubbling around the edges—this indicates the potatoes are cooking properly.

If the top cheese is browning too quickly before the potatoes are done, loosely tent the dish with foil for the remaining time.

Easy Scalloped Potatoes with Mushroom Soup

Delicious Easy Scalloped Potatoes with Mushroom Soup recipe with step-by-step instructions.

Print Recipe Pin Recipe

Prep Time 25 minutes mins

Cook Time 55 minutes mins

Total Time 1 hour hr 20 minutes mins

Servings 6 servings

Calories 2400 kcal

Ingredients

  

For the potatoes::

• 7-8 medium potatoes
• 1.5 cups colby jack (freshly shredded for better melting)
• 1.5 cups mild cheddar (I prefer Tillamook for a smoother melt)

For the soup sauce::

• 1/2 cup onions (finely diced into 1/4-inch pieces)
• 1/3 cup bacon bits
• 4 tbsp butter (I use Kerrygold for a richer sauce)
• 4 tbsp flour
• 1.25 cups milk
• 1 can condensed mushroom soup (I use Campbell's for the classic flavor)
• 1 tsp celery seeds
• 1.5 tsp garlic powder
• 1 tsp salt
• 1/2 tsp pepper
• 1/4 tsp smoked paprika
• 3/4 cup sour cream (full-fat gives the best creamy texture)

Instructions

 

• Preheat your oven to 350°F. While it heats, peel and slice the potatoes into 1/8 to 1/4 inch thick rounds—uniform thickness ensures even cooking. Place the sliced potatoes immediately into a bowl of cold water to prevent oxidation and remove excess starch, which helps them cook more evenly. Finely dice the onions into 1/4-inch pieces and shred both the Colby Jack and mild cheddar cheeses using a box grater or food processor; freshly shredded cheese melts much more smoothly than pre-shredded varieties. Grease a 9x13 inch baking dish lightly with butter or oil, and gather all remaining ingredients and equipment so everything is ready for assembly.
• In a large saucepan, melt the butter over medium heat, then add the diced onions and cook for 2-3 minutes until softened and fragrant. Add the bacon bits and stir to combine. Sprinkle the flour over the mixture and stir constantly for 1-2 minutes to create a roux, cooking out the raw flour taste while building a slight golden color. Gradually whisk in the milk and condensed mushroom soup, stirring constantly to prevent lumps from forming. Once the mixture is smooth and begins to simmer gently, add the celery seeds, garlic powder, salt, pepper, and smoked paprika, stirring to distribute the spices evenly. Remove from heat and stir in the sour cream—I like to do this off the heat to keep the sauce silky smooth without any risk of curdling.
• Drain the soaked potatoes thoroughly and pat them dry with a kitchen towel—removing excess moisture helps them brown slightly and prevents a watery final dish. Begin layering in the prepared baking dish: spread 1/3 of the dried potatoes in an even layer on the bottom. Pour 1/2 cup of the shredded cheese blend over the potatoes, then add half of the creamy mushroom sauce from Step 2, spreading it evenly. Add the next 1/3 of potatoes in another layer, followed by 1/2 cup of cheese. Top with the remaining mushroom sauce, then finish with the final 1/3 of potatoes. Sprinkle the remaining 1/2 cup of cheese over the top—this creates a golden, crusty cheese layer on top while keeping the interior creamy.
• Place the assembled casserole in the preheated 350°F oven and bake for 50-60 minutes until the potatoes are completely tender when pierced with a fork and the top is golden brown. The exact time depends on how thick you sliced the potatoes and your oven's characteristics. About halfway through baking, I like to check that the sauce is bubbling around the edges—this indicates the potatoes are cooking properly. If the top cheese is browning too quickly before the potatoes are done, loosely tent the dish with foil for the remaining time.