Cheesy Scalloped Potatoes with Caramelized Onions Recipe: Comforting Dish
The first time I made these cheesy scalloped potatoes with caramelized onions, I couldn’t believe how comforting and delicious they turned out. The creamy sauce, gooey cheese, and sweet onions came together like magic.
I’ll be honest—it takes a little patience to caramelize the onions, but trust me, it’s worth every minute.
When I pulled the bubbling, golden casserole from the oven, it felt like pure happiness on a plate. Now, I make it whenever I want to wow my family or bring a little extra joy to dinner.
Ingredients
Here’s what you’ll need to bring this cheesy side dish to life:
- 2 tablespoons salted butter – For caramelizing the onions and adding richness.
- 2 large yellow onions, thinly sliced – Fresh onions work best; avoid pre-chopped.
- 1/4 cup dry white wine – Deglazes the pan and deepens onion flavor. (Sub with broth if you prefer.)
- 3 garlic cloves, minced – Adds aromatic warmth.
- 2 teaspoons fresh thyme, chopped – Fresh herbs lift the richness of the dish.
- 1 1/2 cups heavy cream – Gives the sauce its silky creaminess.
- 1 cup whole milk – Balances the richness with a smoother texture.
- 1/4 teaspoon cayenne pepper – A tiny kick of heat without overpowering.
- 1 cup Gruyère cheese, freshly grated – Always grate cheese fresh for the best melt.
- 1 cup sharp cheddar cheese, freshly grated – Perfect for a bold, cheesy topping.
- 4 large russet or Yukon gold potatoes, thinly sliced – Don’t use waxy potatoes; they won’t layer as well.
Note: This recipe serves 8 people, making it ideal for family gatherings or holiday meals.
Variations
You can easily adjust this recipe to match your preferences or dietary needs:
- Dairy-Free: Use plant-based cream and cheese alternatives.
- Extra Flavor: Try smoked paprika, chili flakes, or nutmeg in the sauce.
- Cheese Swaps: Havarti, mozzarella, or Fontina can replace Gruyère for a creamier bite.
- Lighter Version: Swap half the cream for more milk to reduce richness.
Cooking Time
Here’s how long it takes to bring everything together:
- Prep Time: 30 minutes
- Cooking Time: 2 hours 30 minutes
- Total Time: 3 hours
Equipment You Need
A few tools make this recipe much easier:
- Mandoline – For evenly slicing potatoes so they cook properly.
- Large skillet – Essential for caramelizing onions.
- Whisk – Blends the cream sauce without lumps.
- Measuring cup – Helps combine liquids neatly.
- 9×13 casserole dish – Perfect for layering and baking.
How to Make Cheesy Scalloped Potatoes with Caramelized Onions?
Let’s break down the process step by step. This is where the magic happens.
Caramelize the Onions
Melt butter in a large skillet over medium heat, then add sliced onions. Cook them slowly, stirring now and then, until they soften and turn golden—this takes about 10–12 minutes. Deglaze the pan with white wine, scraping up all the tasty bits. Stir in garlic, thyme, salt, and pepper, then cook for another 5 minutes. The onions should be sweet, rich, and caramelized beautifully.
Prepare the Creamy Sauce
In a measuring cup, whisk together heavy cream, milk, cayenne, salt, and pepper. Stir in the Gruyère cheese and let it melt just slightly. This creamy base doesn’t need to be cooked on the stove—it will thicken in the oven and coat the potatoes perfectly.
Slice and Layer the Potatoes
Using a mandoline, slice the potatoes thin and even. Generously butter the casserole dish, then pour a small amount of sauce on the bottom. Add a layer of potatoes, followed by caramelized onions and more sauce. Keep layering until everything is used, finishing with a creamy topping.
Bake to Golden Perfection
Cover the dish with foil and bake at 350°F for 2 hours. This slow cooking allows the potatoes to soak in all the flavors. Remove the foil, sprinkle cheddar cheese over the top, and bake for another 20 minutes. The top should be bubbling and golden brown.
Garnish and Serve
Once baked, sprinkle fresh thyme or parsley over the top for a pop of freshness. Serve hot and enjoy the creamy, cheesy, caramelized goodness in every bite.
Additional Tips for Making this Recipe Better
From my own experience, here’s how I make it even more delicious:
- I always slice potatoes as thin as possible so they bake evenly.
- I caramelize the onions slowly without rushing—it makes a huge difference.
- I butter the casserole dish generously for both flavor and to prevent sticking.
- I never skip the cheddar topping—it gives the dish that irresistible crust.
How to Serve Cheesy Scalloped Potatoes with Caramelized Onions?
This dish shines at both special feasts and casual dinners. I love serving it with roasted turkey, ham, or even grilled salmon.
For presentation, I keep it in the baking dish and sprinkle fresh herbs on top before bringing it to the table. A crisp green salad or roasted veggies alongside balances the richness perfectly.

Nutritional Information
Here’s the breakdown per serving:
- Calories: 478
- Protein: 12g
- Carbohydrates: 35
- Fat: 30g
Make Ahead and Storage
Make Ahead
I like assembling the casserole up to two days in advance (without the cheddar topping). I store it covered in the fridge, then add cheddar right before baking.
Storing Leftovers
Leftovers stay fresh in an airtight container in the fridge for up to 3 days.
Reheating
I reheat in the oven at 350°F until warmed through so the potatoes stay creamy and don’t dry out.
Freezing Option
This dish can be frozen unbaked for up to a month. Thaw it overnight in the fridge before baking as usual.
Why You’ll Love This Recipe?
This dish is a true crowd-pleaser, and here’s why:
- Unforgettable Flavor: The cheesy layers and sweet onions create a comfort-food masterpiece.
- Perfect for Any Occasion: Works just as well at a holiday table as it does on a weeknight.
- Easy to Customize: Switch cheeses, adjust spices, or make it dairy-free.
- Comforting and Impressive: It looks elegant but is surprisingly simple to make.
- Family Favorite: Every time I serve it, people go back for seconds (and sometimes thirds!).

Cheesy Scalloped Potatoes with Caramelized Onions Recipe
Ingredients
Method
- Melt butter in a large skillet over medium heat, then add sliced onions. Cook them slowly, stirring now and then, until they soften and turn golden—this takes about 10–12 minutes.
- Deglaze the pan with white wine, scraping up all the tasty bits. Stir in garlic, thyme, salt, and pepper, then cook for another 5 minutes. The onions should be sweet, rich, and caramelized beautifully.
- In a measuring cup, whisk together heavy cream, milk, cayenne, salt, and pepper. Stir in the Gruyère cheese and let it melt just slightly. This creamy base doesn’t need to be cooked on the stove—it will thicken in the oven and coat the potatoes perfectly.
- Using a mandoline, slice the potatoes thin and even. Generously butter the casserole dish, then pour a small amount of sauce on the bottom.
- Add a layer of potatoes, followed by caramelized onions and more sauce. Keep layering until everything is used, finishing with a creamy topping.
- Cover the dish with foil and bake at 350°F for 2 hours. This slow cooking allows the potatoes to soak in all the flavors. Remove the foil, sprinkle cheddar cheese over the top, and bake for another 20 minutes. The top should be bubbling and golden brown.
- Once baked, sprinkle fresh thyme or parsley over the top for a pop of freshness. Serve hot and enjoy the creamy, cheesy, caramelized goodness in every bite.
Notes
- I always slice potatoes as thin as possible so they bake evenly.
- I caramelize the onions slowly without rushing—it makes a huge difference.
- I butter the casserole dish generously for both flavor and to prevent sticking.
- I never skip the cheddar topping—it gives the dish that irresistible crust.






