Name: Scalloped Potatoes and Ham Recipe
Prep time: 20 min
Cook time: 60 min
Total time: 80 min
Ingredients: 2 lb Yukon Gold potatoes, sliced 1/8 inch thick; 1 ½ cups diced cooked ham; 1 small yellow onion, finely chopped; 3 tbsp unsalted butter; 3 tbsp all-purpose flour; 3 cups whole milk, warmed; 1 tsp kosher salt; ½ tsp black pepper; ½ tsp dried thyme; 1 cup shredded sharp cheddar cheese (optional)

Scalloped potatoes and ham is the kind of casserole that fills the kitchen with the warm scent of cream and baked ham, and leaves you with a dish that is both sturdy and comforting. Thin slices of potato are layered with salty ham and a simple cream sauce, then baked until tender and bubbly.

It’s a dinner that requires little more than a side salad to feel complete, and it reheats beautifully for lunch the next day.

Why This Casserole Stays on the Table

The potatoes soak up the creamy sauce and become velvety, while the ham seasons everything around it with a smoky, salty richness. Because the whole dish bakes in one pan, the top develops a lightly golden crust while the interior stays soft and moist.

It’s flexible enough to use up leftover holiday ham or a single ham steak, and the sauce calls for everyday staples you probably have already. I rely on this recipe when I want something hearty that actually tastes better the next day.

Ingredients

2 lb Yukon Gold potatoes, sliced 1/8 inch thick: waxy potatoes hold their shape; no need to peel
1 ½ cups diced cooked ham: use leftover baked ham or a thick ham steak
1 small yellow onion, finely chopped: brings a mild sweetness
3 tbsp unsalted butter: for the roux
3 tbsp all-purpose flour: to thicken the sauce
3 cups whole milk, warmed: whole milk makes the creamiest sauce
1 tsp kosher salt: adjust if the ham is very salty
½ tsp black pepper
½ tsp dried thyme: the herbal note cuts the richness
1 cup shredded sharp cheddar cheese (optional): for a cheesy top

Variations / Substitutions

Diced pancetta or cooked bacon: both work in place of ham for a different cured flavor
Gruyère or Swiss cheese: use instead of cheddar for a nuttier, meltier top
Add a layer of sautéed mushrooms: stir some sliced mushrooms into the onion for an earthy note
Make it gluten-free: swap the flour for 2 tbsp cornstarch dissolved in 2 tbsp cold water, then whisk into the milk mixture
Skip the cheese: the classic version is just potatoes, ham, and cream sauce, and it’s still plenty rich
For a lighter take, try a potato and leek soup.

How to Make Scalloped Potatoes and Ham

Step 1: Make the Cream Sauce

Set the oven to 375°F (190°C). Melt the 3 tbsp butter in a medium saucepan over medium heat, then add the chopped onion. Cook for about 3 minutes, stirring often, until the onion is soft and translucent but not browned. Whisk in the 3 tbsp flour and keep stirring for 1 minute to cook out the raw flour taste.

Pour in the 3 cups of warm milk in a steady stream while whisking, then raise the heat slightly to bring the sauce to a gentle simmer. Cook for 5 minutes, whisking frequently, until the sauce thickens enough to coat the back of a spoon. Off the heat, stir in the salt, pepper, and thyme. The sauce will seem thin, but it will thicken further as it bakes.

Step 2: Layer the Potatoes and Ham

Grease a 9×13-inch baking dish with a little butter or cooking spray. Arrange roughly one third of the potato slices in the dish, shingling them just slightly so they overlap. Scatter half of the diced ham over the potatoes, then spoon about one third of the cream sauce on top, spreading it around to reach the edges.

You want each potato slice to have some contact with the sauce, so don’t pile the potatoes too high in one spot. The slight overlap keeps the slices from drying out.

Step 3: Pour Over the Remaining Sauce

Add another third of the potatoes, the rest of the ham, and another third of the sauce. Finish with the final layer of potatoes, then pour all the remaining sauce over the top. Use a spatula to nudge the top potato slices so they are mostly submerged. If you’re using the optional cheddar, sprinkle it evenly over the surface now.

At this stage the dish looks quite saucy, and that’s correct. The potatoes release their own starch while baking, which helps the sauce cling to every layer.

Step 4: Bake the Casserole

Cover the dish tightly with foil and bake for 30 minutes at 375°F. Remove the foil and continue baking for another 30 minutes, until the top is golden and bubbling, and a paring knife slides easily through the potatoes with no resistance. If the cheese browns too fast, tent the foil loosely over the dish.

The long covered bake steams the potatoes, while the uncovered finish sets the top and concentrates the flavor. The whole kitchen will smell like ham and cream.

Step 5: Rest and Scoop

Let the casserole rest on the counter for 10 minutes before serving. This pause lets the sauce set so the portions hold their shape when you scoop them out. Spoon generous servings onto plates, making sure each person gets some of the crusty top and the creamy middle. The potatoes will be silky, and the ham will have given up its salt to the sauce.

A Few Notes Before You Start

Use a mandoline to slice the potatoes evenly, about 1/8 inch thick. Even slices bake uniformly and prevent some pieces from staying hard while others turn mushy.
Do not rinse the potato slices after cutting. The natural starch is what helps the sauce thicken as it bakes.
Warm the milk before adding it to the roux. Cold milk can cause the sauce to separate or take much longer to thicken.
If your ham is very salty, cut the added salt to ½ tsp and taste the sauce before assembling.

Bake times by dish size:

Dish size	Covered bake	Uncovered bake
9×13-inch	30 mins	30 mins
8×8-inch (halve recipe)	25 mins	25 mins
10-inch cast iron	30 mins	30 mins

Storing and Reheating

Refrigerate leftovers tightly covered for up to 4 days. The potatoes will absorb more sauce as they sit, making the casserole even more cohesive the next day.

Reheating a single portion in the microwave works fine, but for a large amount, cover the dish with foil and warm in a 325°F (160°C) oven for 20 minutes until heated through.

What to Serve With Scalloped Potatoes and Ham

A simple green salad with a sharp vinaigrette cuts the richness of the cream sauce. Steamed green beans with a little lemon butter also work, their brightness balancing the dish. For a crunchier side, try a quick apple or fennel slaw that adds some acid and freshness.

Frequently Asked Questions

Can I assemble this the night before?

Yes, cover and refrigerate the assembled (unbaked) casserole overnight, then pull it out while the oven preheats and bake as directed, adding about 10 minutes to the covered bake time.

Why did my sauce become grainy?

The gravy likely boiled too hard or the milk went in cold. Keep the heat at a gentle simmer and warm the milk first to prevent curdling.

Can I freeze scalloped potatoes and ham?

They freeze well. Cool completely, wrap tightly, and freeze for up to 2 months. Thaw overnight in the fridge before reheating covered in a low oven.

My potatoes still felt firm after an hour. What went wrong?

The slices were probably thicker than 1/8 inch. Continue baking uncovered in 10-minute increments, checking with a knife, until they soften.