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A warm, bubbling ceramic baking dish of classic American Scalloped Potatoes and Ham Casserole, with layered potatoes, diced ham, and melted blistered cheddar cheese under a parsley garnish, on a rustic

Cozy Scalloped Potatoes and Ham Casserole

An ultra-creamy, cheesy scalloped potatoes and ham casserole featuring tender Yukon Gold slices and savory diced ham baked in a rich garlic cream sauce under a blistered cheddar crust.
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Prep Time 20 minutes
Cook Time 1 hour 15 minutes
Total Time 1 hour 35 minutes
Course: Main Course
Cuisine: American
Ingredients Method Notes

Ingredients
  

Main Ingredients
  • 3 lbs Yukon Gold potatoes peeled and sliced 1/8-inch thick
  • 2 cups cooked ham diced into 1/2-inch cubes
  • 3 cups sharp yellow cheddar cheese freshly grated and divided
  • 2 tbsp fresh green parsley finely chopped for garnish
Garlic Cream Sauce
  • 1/4 cup unsalted butter
  • 1/2 cup yellow onion finely diced
  • 3 cloves garlic minced
  • 1/4 cup all-purpose flour
  • 2 cups whole milk
  • 1/2 cup heavy cream
  • 1 tsp kosher salt
  • 1/2 tsp black pepper freshly cracked
  • 1/4 tsp ground nutmeg

Method
 

Prep & Sauce
  1. Peel and slice the Yukon Gold potatoes 1/8-inch thick using a mandoline. Soak in cold water, then drain and pat completely dry. Dice the cooked ham into 1/2-inch cubes.
  2. Melt the unsalted butter in a heavy-bottomed saucepan over medium heat. Sauté the finely diced yellow onion for 3–4 minutes, then add the minced garlic for 30 seconds until fragrant.
  3. Whisk in the all-purpose flour and cook for 1–2 minutes until a smooth blonde paste forms to remove the raw flour taste.
  4. Gradually whisk in the whole milk and heavy cream to prevent lumps. Simmer for 3–5 minutes until the sauce coats the back of a spoon. Stir in the salt, black pepper, and nutmeg.
Assemble & Layer
  1. Preheat oven to 375°F (190°C) and grease a 9x13-inch ceramic baking dish. Arrange one-third of the dry potato slices in an overlapping pattern at the bottom.
  2. Top the potatoes with half of the diced ham, 1 cup of cheddar cheese, and one-third of the cream sauce. Repeat this exact layer once more (potatoes, remaining ham, 1 cup of cheese, and one-third of the sauce).
  3. Finish with a final neat layer of the remaining potatoes and pour the last of the cream sauce over them. Cover tightly with aluminum foil.
Bake & Serve
  1. Bake covered for 45 minutes to trap the steam and soften the potatoes.
  2. Remove the foil, sprinkle the remaining 1 cup of cheddar cheese evenly across the top, and bake uncovered for 25–30 minutes until bubbling and golden-brown. (Optional: Broil for the final 2 minutes for a highly blistered crust).
  3. Remove from the oven and let rest on the counter for at least 15 minutes to allow the sauce to thicken. Garnish with finely chopped fresh parsley before slicing.

Notes

  • Dry the Potatoes: Make sure to pat the potato slices completely dry after soaking. Excess water will make your cream sauce watery.
 
  • Grate Your Own Cheese: Avoid pre-shredded bags. Freshly grated cheddar melts much smoother and creates a better blistered crust.
 
  • Make-Ahead Tip: You can assemble the dish the night before and keep it covered in the fridge. Just add 10–15 extra minutes to the covered baking time.
 
  • Don't Skip the Rest: Let the casserole rest on the counter for 15 minutes before slicing so the cream sauce can thicken up perfectly.