Scalloped Potatoes and Ham is the epitome of comfort food, a hearty and complete casserole that transforms simple ingredients into a creamy, cheesy, and deeply satisfying meal. This recipe elevates the classic scalloped potato dish by incorporating layers of savory diced ham, creating a one-pan wonder that is perfect for a family dinner, a holiday brunch, or a potluck gathering. The magic begins with a homemade creamy sauce, infused with the aromatic flavors of sautéed onion, garlic, and fresh thyme, which blankets every thin slice of potato and piece of ham. As it bakes, the sauce thickens, the potatoes become meltingly tender, and the top develops a golden, bubbly cheese crust that is utterly irresistible.
What sets this dish apart is its from-scratch sauce, which offers a far superior flavor and texture than any shortcut version. The process of creating a roux with butter and flour, then slowly whisking in broth and milk, results in a velvety, luxurious base that is both rich and balanced. The addition of a hint of paprika and a touch of optional cayenne pepper adds a subtle warmth and complexity that cuts through the richness. Layering the ingredients ensures that every single bite is packed with flavor, from the tender potatoes and smoky ham to the gooey, melted cheese. This casserole is the ultimate solution for using up leftover holiday ham, but it is so delicious that it’s worth cooking ham specifically to make it. It’s a timeless, crowd-pleasing dish that promises warmth and comfort with every forkful.
Why You’ll Love This Recipe:
• The Ultimate Comfort Food: Creamy, cheesy, and packed with hearty potatoes and ham—it’s the definition of a satisfying meal.
• Perfect for Leftovers: An exceptional and delicious way to use up leftover baked ham after a holiday dinner.
• Feeds a Crowd: This large casserole is designed to serve a family with plenty for seconds, or to be the star of any potluck table.
• Make-Ahead Friendly: The casserole can be assembled a day in advance and baked when needed, making it perfect for stress-free entertaining.

Ingredients:
- ⅓ cup butter
- 1 medium onion, finely chopped
- 3 cloves garlic, minced
- 3 tablespoons all-purpose flour
- 1 cup low-sodium chicken broth
- 2 cups whole milk or 2%
- 2 teaspoons fresh thyme leaves, plus more for garnish
- ½ teaspoon kosher salt
- ½ teaspoon freshly ground black pepper
- ¼ teaspoon paprika
- ⅛ teaspoon cayenne pepper (optional, for a subtle kick)
- 3 lbs. Yukon gold potatoes, sliced ⅛ inch thick
- 2 cups cooked ham, diced
- 1 cup shredded sharp cheddar cheese
- 1 cup shredded Monterey Jack cheese
Instructions:
Step 1: Preheat and Prepare
• Preheat your oven to 375°F (190°C). Generously spray a 9×13-inch baking dish with nonstick cooking spray. This prevents sticking and makes for easy cleanup.
Step 2: Sauté the Aromatics
• In a large saucepan or Dutch oven, melt the butter over medium heat. Add the finely chopped onion and cook for 6-7 minutes, stirring occasionally, until softened and translucent. Reduce the heat to medium-low and add the minced garlic. Cook for 1 minute, stirring constantly, until fragrant.
Step 3: Create the Roux
• Sprinkle the flour over the onion and garlic mixture. Cook for 2 minutes, stirring constantly. This cooks out the raw flour taste and creates a roux, which will thicken the sauce.
Step 4: Make the Cream Sauce
• Slowly pour in the chicken broth and milk, whisking constantly to prevent any lumps from forming. Continue to cook, whisking frequently, until the sauce has thickened and coats the back of a spoon, about 5-7 minutes.
Step 5: Season the Sauce
• Remove the saucepan from the heat. Whisk in the fresh thyme, kosher salt, black pepper, paprika, and cayenne pepper (if using). Taste and adjust seasoning if necessary.
Step 6: Layer the Casserole
• Spread a few tablespoons of the cream sauce evenly over the bottom of the prepared baking dish. This prevents the bottom layer from sticking.
• Arrange a single layer of one-third of the potato slices over the sauce. Top with one-third of the diced ham, then pour one-third of the remaining cream sauce evenly over the top.
• Repeat this process two more times, creating three complete layers of potatoes, ham, and sauce, ending with a layer of sauce.
Step 7: Bake Covered
• Cover the baking dish tightly with aluminum foil. Place it in the preheated oven and bake for 1 hour. The foil traps steam, which is essential for properly cooking the potatoes until they are tender.
Step 8: Add Cheese and Finish Baking
• Carefully remove the foil. In a bowl, combine the shredded cheddar and Monterey Jack cheeses. Sprinkle the cheese blend evenly over the top of the casserole.
• Return the dish to the oven, uncovered, and bake for an additional 20-25 minutes, or until the cheese is completely melted, bubbly, and lightly browned in spots, and the potatoes are easily pierced with a knife.
Step 9: Rest and Serve
• Remove the casserole from the oven. Garnish with additional fresh thyme. It is crucial to let the casserole rest, loosely covered with the foil, for 15-20 minutes before serving. This allows the sauce to thicken slightly and makes serving much easier.
Tips:
• Slice Potatoes Evenly: Use a mandoline slicer to achieve uniformly thin (⅛-inch) potato slices. This ensures they all cook at the same rate.
• Low-Sodium Broth: Using low-sodium broth is recommended because the ham and cheese will add their own saltiness, giving you better control over the final seasoning.
• Don’t Skip the Resting Time: Allowing the casserole to rest after baking is not optional; it is essential for the layers to set, preventing a soupy mess when serving.
• Potato Choice: Yukon Gold potatoes are ideal because they hold their shape well and have a naturally buttery flavor that complements the sauce.
Storage Options:
• Refrigerator: Store leftover casserole in an airtight container in the refrigerator for up to 4 days.
• Reheating: Reheat individual portions in the microwave. For larger portions, reheat, covered, in a 350°F (175°C) oven until warmed through, adding a splash of milk if the sauce seems too thick.
• Freezer: This casserole freezes well before baking. Assemble it completely (without baking), wrap tightly in plastic wrap and foil, and freeze for up to 2 months. Thaw overnight in the refrigerator and bake as directed, adding extra time if needed.
Scalloped Potatoes and Ham is a classic, beloved casserole that delivers the ultimate in creamy, cheesy, savory comfort. It’s a dependable and delicious recipe that is guaranteed to bring everyone to the table. Enjoy!