
Loaded Scalloped Potatoes make ordinary comfort food feel truly special with their creamy layers, flavorful cheese, crispy bacon, and caramelized onions. If you want a crowd-pleasing side dish that never fails to impress at gatherings and holidays, this one always disappears fast at my house. The combination of textures and savory ingredients turns classic scalloped potatoes into something crave-worthy.
I first made this version for Thanksgiving and my family immediately declared it the best potatoes they had ever had. Now it is a requested dish for every celebration.
Ingredients
- Extra virgin olive oil: provides a subtle flavor foundation and helps caramelize onions beautifully choose a bottle that smells grassy and fresh
- Onions: are key for sweetness and depth the fresher and firmer the better for caramelizing
- Bacon: adds smoky crunch and savory flavor thick cut bacon gives the best texture
- Unsalted butter: brings richness buy European style for extra creamy results
- All purpose flour: is used for thickening choose unbleached for a lighter sauce
- Whole milk: creates a silky and luscious texture best with full fat for creaminess
- Potatoes: Yukon or russet both slice evenly and hold their shape use a mandoline for paper thin slices
- Cheese: a mix of sharp cheddar and Gruyere brings nutty tang and melt never use pre-shredded which can be waxy
- Salt and pepper: tie the whole dish together freshly ground is best for bright flavor
Step-by-Step Instructions
- Prep the Baking Dish:
- Lightly grease a deep 9x13 or 9x9 dish with butter make sure to reach the corners for easy serving
- Caramelize the Onions:
- Heat olive oil in a skillet over medium stir in onions with salt and pepper cook slowly until dark gold and super soft about 18 to 20 minutes then set aside
- Cook the Bacon:
- In the same skillet cook bacon until crisp set pieces on a paper towel for maximum crunch crumble them once cool
- Make the Sauce:
- Melt butter over medium add flour whisking constantly to avoid lumps cook for 2 minutes until paste smells nutty slowly pour in milk keep whisking bring to a gentle simmer then remove when thick and glossy
- Layer the Ingredients:
- Arrange half the sliced potatoes in the prepared dish cover with half the onions bacon cheese and sauce repeat for a second layer pressing down gently to flatten
- Bake and Finish:
- Cover dish with foil and bake at 350 degrees for 1 hour remove foil and bake 30 more minutes until potatoes are fork tender and top is golden let cool 10 minutes before serving so sauce sets

Bacon is always the star in my house but some of my favorite moments are when everyone goes back for seconds and there are never any leftovers. The caramelized onions are my personal touch and always get compliments for their sweetness.
Storage Tips
Leftovers should be cooled and stored in an airtight container in the fridge they keep well for up to four days. For best results reheat in the oven at 350 degrees covered until warmed through which helps the sauce stay creamy. This dish also freezes well if you want to prepare ahead simply let cool slice into portions and freeze tightly wrapped.
Ingredient Substitutions
You can swap Yukon potatoes for russets and still get great results. Any well melting cheese works but for a sharper flavor try all cheddar or mix in Monterey Jack. Turkey bacon is a lighter substitute. For a vegetarian version leave out the bacon and add a layer of sautéed mushrooms for umami.
Serving Suggestions
Loaded Scalloped Potatoes are the centerpiece for classic ham dinners but also shine next to roast chicken steak or even as a brunch side. Try serving with a crisp green salad to balance the richness. They are special enough for holidays but simple enough for a cozy weekend meal.

Cultural and Historical Context
Scalloped potatoes trace back to French country kitchens where cooks layered potatoes with creamy sauce. The loaded version is an American spin leaning on flavors like bacon and cheddar. In my family we always serve this dish during winter holidays and it is now as tradition as the turkey itself.
Recipe FAQs
- → How do I achieve perfectly caramelized onions?
Slice onions thinly and cook slowly over medium heat with a little olive oil, stirring often, until they turn a deep golden brown for the best flavor.
- → Can I use other types of cheese?
Absolutely! While cheddar and Gruyere melt beautifully, you can substitute your favorites like fontina, Monterey Jack, or Swiss for different flavors.
- → Do I need to peel the potatoes first?
Peeled potatoes create a softer, uniform texture, but leaving the skins on adds rustic appeal and extra nutrients. Choose based on your preference.
- → How can I make this dish ahead of time?
Assemble the potatoes and sauce in the dish, cover, and refrigerate for up to 24 hours before baking. Add an extra 10-15 minutes to baking time if from cold.
- → What potatoes work best for scalloped dishes?
Yukon Gold or russet potatoes are ideal because they hold their shape and absorb flavors well while offering a creamy texture.