My family goes crazy for anything with cheese and potatoes and this Potatoes Au Gratin hits every time — rich, creamy, and bubbly from the oven for just $8. It looks like you spent hours in the kitchen and nobody has to know you didn’t.

Potatoes Au Gratin in a baking dish.
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In a house with 8 kids, a side dish that disappears completely is the highest compliment I can get. This is one of those recipes. I set it on the table and by the time everyone has gone through the line, I am lucky if there is enough left for me. My boys especially — they go back for the crispy cheesy edges every single time. It is comfort food at its best and it costs almost nothing to make.

Try these other Au Gratin Recipes – Cauliflower au Gratin, Sweet Potato Au Gratin and Au Gratin Potatoes Crock Pot Recipe.

Why We Love This Recipe

  • Costs just $6–8 to feed the whole family — a steakhouse-worthy side dish at a fraction of the price
  • Made with pantry staples you already have — butter, flour, milk, russet potatoes, and shredded cheddar
  • Rich, creamy, and cheesy with a golden bubbly top that looks impressive with almost no effort
  • Perfect for holidays AND weeknights — make it ahead and just pop it in the oven when you need it
  • Completely customizable — swap the cheese, add ham or bacon, or throw in fresh herbs
  • Leftovers are somehow even better the next day — the sauce soaks into the potatoes overnight

Ingredients

Ingredients needed to make recipe which includes russet potatoes, white onion, butter, flour, garlic powder, milk, cheddar cheese, gruyere cheese, salt and pepper, parsley.

Everything in this recipe is a basic pantry and grocery staple — nothing specialty, nothing hard to find. Here is what you need and why each ingredient matters.

  • Russet potatoes — peeled and sliced into ⅛-inch thick slices. Russet potatoes are the best choice because they are high in starch and low in moisture, which gives you a creamy sauce that does not turn watery.
  • White onion — adds a mild sweetness to every layer. Yellow onion works just as well.
  • Butter — we use unsalted butter so we can control the salt level in the sauce.
  • All-purpose flour — mixed with the butter to create a roux, which is what thickens the sauce and keeps it from curdling.
  • Milk — whole milk gives the creamiest result. If your sauce comes out too thin, swap for heavy cream.
  • Garlic powder — adds warmth and depth to the sauce without any chopping.
  • Salt and pepper — season to taste.
  • Sharp cheddar cheese — freshly shredded from a block. Sharp cheddar is bold enough to stand up to the potatoes and melts beautifully. See the cheese section below for alternatives.
  • Fresh parsley — optional, for garnish.

Scroll to the bottom for the full recipe and ingredients in the recipe card.

How to Make Au Gratin Potatoes

Step 1 – Prepare oven and baking dish – Preheat the oven to medium heat 400 degrees F. Spray a 2.5 or 3 quart casserole pan with a non-stick cooking spray.  

Slice potatoes and onions layered in a baking dish.

Step 2 – Place Potatoes and Onions in dish – Layer the potatoes and sliced onions into the casserole dish.  You want to make slanted rows and layer the sliced potatoes on top of each, leaving room in between so the sauce can get into between the potatoes.  

Milk, garlic powder, salt and pepper whisked in a large sauce pan.

Step 3 – Melt Butter and add other ingredients – Melt the butter in a medium saucepan over medium high heat.  Add the flour and stir until combined.  Then whisk in the milk, garlic powder, salt and pepper.  Cook for 2-3 minutes whisking continuously until the mixture thickens. 

Shredded cheese added to the milk mixture in the sauce pan.

Step 4 – Stir in cheese – Then remove the saucepan from the heat and then immediately stir in the ½ cup shredded cheeses.  

Cheese mixture poured over the slice potatoes and onions in the baking dish.

Step 5 – Pour over potatoes – Pour the cheese sauce even over the potatoes in the casserole dish making sure that they are all covered with the cheese sauce. 

Step 6 – Cover potatoes and Bake – Cover the casserole dish with foil and bake for 60 minutes.  Then remove the foil and bake for 20-30 minutes until the top of the potatoes are browned and the potatoes are fork tender. 

Step 7 – Serve and Enjoy – Let the potatoes sit for 20-30 minutes before serving.  Then top with the fresh parsley and it’s ready to enjoy.

Au Gratin Potatoes in a casserole dish.

Recipe Tips

  • Always shred cheese from a block. Pre-shredded cheese has added starches that prevent smooth melting. Two extra minutes of grating makes a noticeably creamier sauce.
  • Slice potatoes as evenly as possible. Aim for ⅛-inch slices — a mandoline slicer makes this fast and consistent. Uneven slices mean some potatoes will be undercooked while others are overdone.
  • Layer with space between slices. You want the cheese sauce to get between every layer — do not pack them too tightly or the center will stay undercooked.
  • Stir the sauce constantly. Once you add the milk to the roux, whisk continuously for 2–3 minutes until it thickens. Stopping too soon leads to a lumpy sauce.
  • Remove from heat before adding cheese. Always take the saucepan off the heat before stirring in the shredded cheese. Adding cheese to a pan that is still on the heat causes it to seize and turn grainy.
  • Let it rest before serving. This is the step everyone skips and then wonders why the sauce is runny. Let the dish sit for 20 minutes after it comes out of the oven — the sauce thickens as it cools slightly and the slices hold together when you serve them.
  • Microwave shortcut for busy nights. Microwave the sliced potatoes and onions for 10 minutes before layering in the dish — this cuts the oven time significantly on weeknights.

Variations Ideas

  • Change the cheese — sharp cheddar is the classic but a half-and-half mix of cheddar and Gruyere is next level for holidays. Mozzarella works for a milder, stretchier result.
  • Add protein to make it a meal — diced ham is the most classic addition and turns this into a full dinner. Crumbled bacon or shredded rotisserie chicken also work beautifully.
  • Add fresh herbs — rosemary or thyme stirred into the sauce adds a subtle earthy flavor that pairs especially well with the cheese.
  • Make it spicy — add a pinch of cayenne or a few dashes of hot sauce to the cheese sauce for a little heat that cuts through the richness.
  • Lighter version — swap half the potatoes for cauliflower florets. Cauliflower au Gratin is just as creamy and a great way to sneak in a vegetable.

Best Cheese for Potatoes Au Gratin

Sharp cheddar is our everyday go-to and it is available at every grocery store. It has enough bold flavor to come through in the creamy sauce and melts evenly when you shred it fresh from the block.

If you want to upgrade for a special occasion, Gruyere is incredible — rich, nutty, and melts like a dream. A mix of half sharp cheddar and half Gruyere is our favorite combination for holidays.

One rule that makes a real difference: always shred your cheese from a block rather than buying pre-shredded. Pre-shredded cheese is coated in starches that prevent it from melting smoothly. It takes two extra minutes and the result is noticeably creamier.

Au Gratin Potatoes in a casserole dish with a serving on a spoon.

Can I Make This Ahead of Time?

Yes, and this is one of the best make-ahead side dishes for the holidays. Assemble the full dish up to 24 hours in advance, pour the cheese sauce completely over the potatoes, and cover tightly with foil so no air reaches the potatoes.

Refrigerate until ready to bake. Pull it out of the fridge at least 10 minutes before baking and add 10–15 extra minutes to the bake time since it is starting cold. This is how I survive Thanksgiving with 8 kids running around.

Serving Suggestions

Au Gratin Potatoes Recipe is a dish that I tend to make with our holiday dinner. Occasionally I make during the week as we enjoy it all year long. It is rich in flavor so we tend to have leftovers.

Frequently Asked Questions

What is the Difference between Scalloped and Au Gratin Potatoes?

The main difference comes down to cheese. Scalloped potatoes are typically cooked in a cream sauce without cheese layered between the slices. Au gratin potatoes have cheese both mixed into the sauce and layered throughout, which makes them richer and more indulgent. Our recipe uses a cheese sauce poured over the top, which technically puts it closer to scalloped potatoes — but we add plenty of cheese so we call it au gratin and nobody complains.

How to Store and Reheat Potatoes Au Gratin

Store leftovers in an airtight container in the refrigerator for up to 5 days. For a small portion, reheat in the microwave. For a larger amount, place back into a casserole dish, add a little extra cheese on top, and reheat in a 350-degree oven until warmed through. The oven method heats more evenly and the extra cheese on top makes the leftovers taste freshly made.

Why did my potatoes au gratin turn out watery?

Two common reasons: the potatoes released too much moisture during baking, or the sauce was not thick enough before pouring. Using russet potatoes helps because they are high in starch and low in moisture. If your dish is still coming out watery, replace the milk with heavy cream — it makes the sauce richer and more stable. Also make sure you whisk the roux long enough before adding the milk and keep whisking until the sauce visibly thickens.

Why did my cheese sauce curdle?

Curdling happens when dairy is exposed to high heat too quickly. The flour roux prevents this by stabilizing the sauce before the cheese is added. The other key step is removing the pan from heat completely before stirring in the shredded cheese. Heat causes cheese proteins to seize — taking the pan off the burner first gives you a smooth, creamy sauce every time.

More Classic Potato Side Dishes

We hope this Potatoes Au Gratin Recipe becomes a staple at your table the way it has at ours — for holidays, for weeknights, and for every occasion in between. If you make it, please leave a star rating and a comment below.

I love hearing which cheese combination you used and whether your family fought over the crispy edges the way mine does. And if you are looking for more easy side dishes that feel special without breaking the budget, we have plenty more where this came from!

A close-up of creamy, golden-brown Potatoes Au Gratin Recipe, garnished with chopped parsley and being served with a spatula.

Potatoes Au Gratin Recipe

5 from 4 votes
Estimated Cost: $8.29, $1.04 per Servings
You are going to love this easy, cheesy Potato Au Gratin side dish. Thinly slice potatoes are mixed in a creamy sauce and topped with cheese.
Prep Time 20 minutes
Cook Time 1 hour 30 minutes
Let Cool 20 minutes
Total Time 2 hours 10 minutes
Servings 8
Cuisine American
Course Side Dish
Calories 334
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Ingredients

  • 3 pounds Russet Potatoes peeled and sliced into 1/8” thick slices
  • 1 White Onion thinly sliced
  • ¼ cup Butter
  • ¼ cup All Purpose Flour
  • ½ tsp Garlic Powder
  • 2 cups Whole Milk
  • 1 cup Sharp Cheddar Cheese shredded
  • ½ cup Gruyere Cheese shredded
  • ½ tsp Pepper
  • 1 tsp Salt
  • Fresh Parsley chopped

See how we calculate recipe costs.

Instructions

  • Preheat the oven to 400°F and spray a 2.5–3 quart casserole dish with non-stick cooking spray.
  • Layer 3 pounds russet potatoes peeled and sliced into ?-inch thick slices and 1 thinly sliced white onion into the casserole dish, arranging them in slightly slanted rows and overlapping the potatoes to allow room for the sauce to flow between layers.
  • In a medium saucepan over medium-high heat, melt ¼ cup butter.
  • Stir in ¼ cup all-purpose flour until combined.
  • Slowly whisk in 2 cups whole milk, ½ teaspoon garlic powder, 1 teaspoon salt, and ½ teaspoon pepper. Cook for 2–3 minutes, whisking continuously, until the sauce thickens.
  • Remove the saucepan from the heat and immediately stir in 1 cup shredded sharp cheddar cheese and ½ cup shredded Gruyère cheese until melted and smooth.
  • Pour the cheese sauce evenly over the potatoes and onions, making sure all of the potatoes are coated.
  • Cover the casserole dish tightly with foil and bake for 60 minutes.
  • Remove the foil and continue baking for 20–30 minutes, until the top is browned and the potatoes are fork tender.
  • Let the potatoes rest for 20–30 minutes before serving.
  • Top with chopped fresh parsley and enjoy!

Recipe Notes

Use freshly shredded cheeses so that it melts smoothly and evenly in this recipe. 
Try to slice the potatoes as even as possible so that they cook at approximately the same time (the thinner the better). 
If you cannot find Gruyere Cheese, you can use mozzarella cheese instead.  
Refrigerate any leftovers in an airtight container for up to 5 days.  

Nutrition Facts

Calories 334kcal, Carbohydrates 38g, Protein 12g, Fat 15g, Saturated Fat 9g, Polyunsaturated Fat 1g, Monounsaturated Fat 4g, Trans Fat 1g, Cholesterol 46mg, Sodium 520mg, Potassium 848mg, Fiber 3g, Sugar 5g, Vitamin A 498IU, Vitamin C 11mg, Calcium 287mg, Iron 2mg

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About the Author

Hi, I’m Carrie Barnard — a professional food blogger with over 14 years of experience helping busy families make dinner fast, easy, and affordable.

At Eating on a Dime, I share simple, budget-friendly recipes that are tested in my own kitchen and approved by my 8 kids. With millions of readers each month, I’m here to help you cook real food for real families — without the stress.

5 from 4 votes (4 ratings without comment)

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Comments

  1. Peggy says:

    Could you use red skin potato’s ?

    1. Carrie Barnard says:

      Yes, they will work great in this recipe.