Baked Scalloped Potatoes and Ham Casserole

I thought scalloped potatoes were fancy restaurant food until I was in my twenties. My mom never made them at home—she stuck to mashed or baked potatoes for family dinners. The creamy, cheesy layers seemed too complicated for a weeknight meal.

Turns out I was wrong. Scalloped potatoes are actually pretty simple to make, and when you add ham, you’ve got a complete meal that feeds the whole family. This casserole has become my go-to for busy nights when I want something warm and filling without spending hours in the kitchen.

What Kind of Potatoes Should I Use?

Yukon Gold potatoes are perfect for this scalloped potato casserole because they hold their shape well during baking while still becoming tender and creamy. These potatoes have a naturally buttery flavor and smooth texture that works great in cream-based dishes. If you can’t find Yukon Golds, red potatoes are your next best option since they also hold up well to long cooking times. I’d avoid russet potatoes for this recipe since they tend to break down too much and can make your casserole mushy. When slicing your potatoes, aim for that ⅛-inch thickness – it’s thin enough to cook through properly but thick enough to maintain some texture in each bite.

Options for Substitutions

This comforting casserole is pretty forgiving when it comes to swaps:

• Yukon gold potatoes: Russet potatoes work great too, though they’ll break down a bit more and create a creamier texture. Red potatoes hold their shape well if you prefer firmer slices.
• Diced cooked ham: Leftover turkey, cooked bacon pieces, or even rotisserie chicken make good substitutes. You could also skip the meat entirely for a vegetarian version.
• Milk and chicken broth: Heavy cream instead of milk creates a richer sauce, or you can use all milk if you don’t have broth on hand. For a lighter version, try half-and-half.
• Sharp cheddar cheese: Gruyere, Swiss, or even Monterey Jack work well here. If you’re out of cheese, the casserole is still delicious without it – just add a bit more seasoning.
• Butter: You can substitute with the same amount of olive oil or vegetable oil, though butter gives the best flavor for the roux.
• Dried thyme: Fresh thyme (use 1½ teaspoons), rosemary, or sage all pair nicely with potatoes and ham. In a pinch, Italian seasoning works too.

Watch Out for These Mistakes While Baking

The biggest mistake when making scalloped potatoes is slicing your potatoes too thick, which leads to uneven cooking and hard spots – aim for thin, consistent ⅛-inch slices using a mandoline or sharp knife for the best results.

Another common error is not cooking your flour and butter mixture (the roux) long enough, which can leave you with a sauce that tastes floury instead of smooth and creamy – cook it for at least 2-3 minutes while stirring constantly.

Don’t skip seasoning each layer of potatoes with salt and pepper as you build the casserole, since this ensures flavor throughout rather than just on top, and always cover with foil for the first hour of baking to prevent the top from browning too quickly while the potatoes cook through.

Test for doneness by inserting a knife into the center – it should slide through the potatoes easily without resistance.

What to Serve With Scalloped Potatoes and Ham Casserole?

This hearty casserole is pretty much a complete meal on its own, but I love pairing it with something fresh and crisp to balance out all that creamy goodness. A simple green salad with mixed greens, cherry tomatoes, and a light vinaigrette works perfectly to cut through the richness of the potatoes and ham. Steamed or roasted green vegetables like broccoli, green beans, or asparagus are also great choices that add some color and nutrition to your plate. If you want to keep things really simple, even just a side of buttered dinner rolls or crusty bread makes this feel like a proper Sunday dinner.

Storage Instructions

Refrigerate: This hearty casserole keeps really well in the fridge for up to 4 days. Just cover it tightly with foil or transfer leftovers to an airtight container. The flavors actually get even better after a day or two, so it’s perfect for making ahead for busy weeknights.

Freeze: You can freeze this casserole for up to 3 months, either before or after baking. If freezing unbaked, wrap it well in plastic wrap and foil. For baked leftovers, let it cool completely first, then freeze in individual portions or as a whole dish in a freezer-safe container.

Reheat: To warm up leftovers, cover with foil and bake at 350°F for about 20-30 minutes until heated through. You can also microwave individual portions on medium power, stirring halfway through. If reheating from frozen, thaw overnight in the fridge first for best results.

Preparation Time	15-20 minutes
Cooking Time	75-85 minutes
Total Time	90-105 minutes
Level of Difficulty	Medium

Estimated Nutrition

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

• Calories: 1950-2100
• Protein: 65-75 g
• Fat: 75-85 g
• Carbohydrates: 270-290 g

Ingredients

For the sauce:

• 1 small yellow onion (finely diced)
• 1/3 cup unsalted butter
• 1/3 cup all-purpose flour
• 1/2 cup chicken broth
• 3 cups milk (whole milk recommended for richness)
• 1/2 tsp dried thyme
• Salt and pepper, to taste

For the casserole:

• 2 cups cooked ham (cubed into 1/2-inch pieces)
• 3 lb Yukon gold potatoes (sliced 1/8-inch thick)

For the topping (optional):

• 1 cup shredded sharp cheddar cheese (Tillamook brand is excellent here)

Step 1: Prepare the Oven and Baking Dish

Preheat your oven to 350°F (175°C).

Grease a 9×13-inch baking pan with a little butter or nonstick spray to prevent sticking, then set it aside while you prepare the other components.

Step 2: Cook the Onion and Make the Sauce Base

• 1/3 cup unsalted butter
• 1 small yellow onion, diced
• 1/2 tsp dried thyme
• 1/3 cup all-purpose flour

In a medium saucepan over medium-low heat, melt the unsalted butter.

Add the diced onion and cook until it’s soft and translucent, about 3 to 5 minutes.

Stir in the dried thyme and flour, and continue to cook for 1 to 2 minutes, stirring frequently to develop the roux without browning it.

Step 3: Whisk in Milk and Broth to Finish the Sauce

• 3 cups milk
• 1/2 cup chicken broth
• salt and ground black pepper, to taste

Reduce the heat to low.

Gradually add the milk, a little at a time, whisking thoroughly between each addition to keep the mixture smooth.

The sauce will thicken up as you go, but will become smoother with each addition of milk.

Once all the milk is incorporated, whisk in the chicken broth, then season with salt and ground black pepper to taste.

Increase the heat to bring the mixture just to a boil and let it boil gently for 1 minute to thicken.

I like to taste the sauce at this point and adjust the salt or pepper if needed.

Step 4: Layer the Potatoes, Ham, and Sauce

• 3 lb Yukon gold potatoes, sliced 1/8 inch thick
• 2 cups cubed cooked ham
• sauce from Step 3

Arrange one third of the sliced Yukon gold potatoes on the bottom of the prepared pan.

Top evenly with one third of the cubed cooked ham and then one third of the sauce from Step 3.

Repeat this layering process two more times, ending with the remaining sauce on top.

The layers ensure every bite is creamy and satisfying.

Step 5: Bake the Casserole

• 1 cup shredded sharp cheddar cheese

Cover the baking dish with aluminum foil and bake for 50 minutes.

Remove the foil and continue baking, uncovered, for an additional 25 to 35 minutes, or until the potatoes are tender when pierced with a fork.

During the last 15 minutes of baking, sprinkle the shredded sharp cheddar cheese evenly over the top layer.

Letting the cheese melt at the end helps create a beautifully gooey topping.

Step 6: Cool, Serve, and Garnish

Allow the casserole to cool for at least 15 minutes before serving so it sets and is easier to slice into portions.

For a pop of color and freshness, I like to sprinkle on a bit of chopped parsley at the end.

Enjoy!