Thinly sliced scalloped potatoes with bacon and caramelized onions are a rich and flavorful side dish you’ll want to serve with your next meal.

A few weeks ago my husband suddenly asked for scalloped potatoes. He was remembering the boxed freeze-dried kind from childhood, but at our house we upgrade everything. Thinly sliced potatoes take on new life with smoky bacon, sweet caramelized onions and plenty of cheese for a comforting, crowd-pleasing side dish.
Scalloped potatoes and potatoes au gratin — what’s the difference?
People often use the terms scalloped potatoes and au gratin potatoes interchangeably, but there’s a simple distinction: au gratin means “with cheese,” while scalloped potatoes use dairy such as milk or cream in the sauce. Either way, the result is delicious—so call them what you like.
Ingredients and tools you will need
This cheesy scalloped potato recipe is an excellent choice for holidays or any dinner where you want a special side. You’ll need:
- 6 slices thick-cut bacon, coarsely chopped
- 1 yellow onion, thinly sliced
- 1 ¼ teaspoons salt, divided
- 1 cup beef broth
- 1 teaspoon dried thyme
- ½ teaspoon ground black pepper
- 3 pounds Yukon Gold potatoes, sliced about 1/8-inch thick — Yukon Golds hold their shape well because of their slightly waxy texture.
- 4 tablespoons unsalted butter, cut into cubes
- 4 ounces (about 1 cup) shredded Pepper Jack cheese
- Mandoline slicer, optional — handy for uniform slices but a sharp knife works fine.
- 3-quart or 13 x 9-inch casserole dish
- Large skillet

How to make scalloped potatoes with bacon
- Preheat the oven to 425°F. Grease a casserole dish.
- Cook the chopped bacon in a hot skillet until crisp, about 10 minutes. Use a slotted spoon to transfer the bacon to paper towels to drain, but leave the bacon fat in the pan.
- Reduce heat to medium and add the sliced onions and ¼ teaspoon salt to the bacon drippings. Cook, stirring frequently, until the onions are soft and caramelized (about 15–20 minutes). Transfer the onions to a large bowl and return the skillet to the burner.
- Pour the beef broth into the skillet and scrape up any browned bits with a wooden spoon. Add the thyme, remaining salt and black pepper, then bring the broth to a simmer.
- Add the crisp bacon, sliced potatoes and caramelized onions to the large bowl and stir to combine. For a pretty presentation arrange the potato slices standing like dominoes in the prepared dish, or simply spread them in an even layer.
- Carefully pour the hot broth over the potatoes.
- Dot the top with the cubed butter.
- Bake uncovered for 45–55 minutes, until the potatoes are fork tender and the edges are golden brown.
- Sprinkle the shredded Pepper Jack over the casserole and return to the oven until the cheese melts, about 5 minutes.
- Remove from the oven and let the dish rest for 15 minutes before serving to allow the sauce to set.




















Storage, freezing, and reheating instructions
Storage: Let leftovers cool completely, then cover the casserole or transfer the potatoes to an airtight container. Refrigerate and consume within four days.
Reheating: Reheat individual portions in the microwave for a few minutes. For the oven, preheat to 350°F and warm the covered casserole for 10–15 minutes until heated through.
Freezing: I do not recommend freezing a fully baked casserole—the texture can suffer. You can freeze a partially baked dish: bake for 30 minutes, cool, wrap tightly in foil and freeze up to two weeks. Thaw in the refrigerator, bake the remaining 20–25 minutes, top with cheese and bake 5 more minutes until the cheese melts.
Frequently asked questions
Yes. Potatoes can be sliced up to 24 hours ahead but will begin to darken; store them submerged in cold water in the fridge to prevent discoloration. Caramelized onions keep up to five days in an airtight container, and cooked bacon can be refrigerated two days in advance.
Yes. Cook the bacon first and spray the slow cooker with cooking spray. Layer potatoes, onions and bacon, reduce the broth to ½ cup, add thyme, salt and pepper, and pour over. Cook on high 3–4 hours or low 6 hours until tender. Add cheese, cover and cook 10 more minutes to melt.
Yes. Small waxy potatoes with thin skins—red potatoes, fingerlings, new potatoes—work well with this method and hold their shape nicely.

Serve scalloped potatoes with
- Steak Oscar
- Bourbon glazed corned beef
- Bourbon glazed baked ham
- Oven-roasted roast beef
- Grilled steaks

Scalloped Potatoes with Bacon and Caramelized Onions
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Ingredients
- 6 slices thick-cut bacon coarsely chopped
- 1 yellow onion thinly sliced
- 1 ¼ teaspoons salt divided
- 1 cup beef broth
- 1 teaspoon dried thyme
- ½ teaspoon ground black pepper
- 3 pounds Yukon gold potatoes sliced to about ⅛-inch thick
- 4 tablespoons unsalted butter cut into cubes
- 4 ounces (about 1 cup) shredded Pepper Jack cheese
Instructions
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Preheat oven to 425°F. Grease a 13 x 9-inch casserole dish.
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Cook the bacon in a medium skillet over medium heat until crisp, about 10–13 minutes. Transfer bacon to paper towels and reserve drippings in the skillet.
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Add onions and ¼ teaspoon salt to the drippings and cook, stirring frequently, until caramelized, about 20–30 minutes. Transfer onions to a large bowl and return the skillet to the heat.
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Pour the broth into the skillet, scrape up browned bits, add thyme, remaining salt and pepper, and bring to a simmer.
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Combine bacon, potatoes and onions in the mixing bowl and stir until well combined.
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Spread the potato mixture into the casserole dish.
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Carefully pour the hot broth over the potatoes.
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Dot the surface with butter.
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Bake uncovered 45–55 minutes until tender and golden at the edges.
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Sprinkle cheese on top and bake until melted, about 5 minutes.
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Remove from oven and rest 15 minutes before serving.
Video
Notes
Reheating: Reheat portions in the microwave or warm the covered casserole in a 350°F oven for 10–15 minutes until heated through.
Freezing: Avoid freezing a fully baked casserole. To freeze partially baked: bake 30 minutes, cool, wrap tightly in foil and freeze up to two weeks. Thaw in the fridge, finish baking 20–25 minutes, add cheese and bake 5 minutes until melted.