Scalloped Potatoes & Ham

Some casseroles are simply dinner. Some casseroles are the reason everyone remembers a meal. This scalloped potatoes and ham casserole is absolutely the second kind — layers of tender potato and savory diced ham blanketed in a rich, velvety homemade cream sauce and finished with a golden, bubbling cheddar crust that makes every serving genuinely spectacular. Ready in just over an hour with eight simple pantry ingredients. This is the timeless comfort food recipe that turns leftover ham into something that feels genuinely celebratory and deeply special on any dinner table.

Six generous servings, one baking dish, and a result that tastes like significantly more effort went into it than actually did. This scalloped potato casserole is about to become one of the most requested dishes in your recipe collection.

Why You’ll Make This Again

The homemade white sauce is what separates this scalloped potato casserole from every version made with canned soup or pre-made sauce. A proper butter and flour roux cooked briefly before the milk is whisked in produces a sauce that is smooth, velvety, and deeply flavored in a way that no shortcut version ever quite achieves. It soaks into every layer of potato during the covered bake and creates a rich, cohesive casserole that holds together beautifully when served. The ham adds a smoky, savory depth throughout every layer. And the cheddar on top melts during the uncovered final bake into a golden, slightly caramelized crust that makes this casserole look as impressive and indulgent as it tastes — the kind of bubbling, golden-topped casserole that makes everyone reach for the serving spoon before it has even finished resting. This is comfort food at its most honest and most satisfying.

This is especially wonderful after holidays when leftover ham is abundant — but it works beautifully all year round as a hearty weeknight casserole, a crowd-pleasing potluck contribution, or a deeply satisfying Sunday supper side dish that makes everything else on the table taste better for being next to it.

How This Comes Together

Make the white sauce, layer the potatoes and ham, pour the sauce over, top with cheddar, bake covered then uncovered, rest, and serve. Each step follows naturally and the hands-on time is just 15 minutes before the oven takes over for the remaining 50 to 55 minutes. The most important technique in this recipe is slicing the potatoes as thinly and as consistently as possible — thin, even slices cook through completely in the same time, create more layers in the casserole, and absorb the cream sauce more thoroughly than thick or unevenly cut pieces that remain partially firm or undercooked in the center even after the full bake time. A mandoline gives the most consistent results but a sharp knife and patience work perfectly well.

What You’ll Need

Simple, affordable pantry ingredients. Use Yukon Gold potatoes for the creamiest, most buttery result — they hold their shape better during the long bake than russets and have a naturally richer flavor that complements the cream sauce beautifully.

• 4 cups potatoes, thinly sliced (about 4 medium potatoes)
• 2 cups diced ham
• 1 cup shredded cheddar cheese
• 2 cups milk
• 2 tbsp unsalted butter
• 2 tbsp all-purpose flour
• 1/2 tsp salt
• 1/2 tsp black pepper

Step-by-Step Directions

Step 1 — Prepare the Sauce

Preheat oven to 375°F. Lightly grease a 2-quart or 9×13-inch baking dish.

In a medium saucepan over medium heat, melt the butter. Whisk in the flour and cook for 1–2 minutes, stirring constantly, until smooth.

Gradually whisk in the milk. Continue cooking for 4–5 minutes, whisking frequently, until the sauce thickens enough to coat the back of a spoon. Season with salt and black pepper.

Step 2 — Layer the Potatoes & Ham

Arrange a layer of thinly sliced potatoes across the bottom of the prepared baking dish. Scatter some of the diced ham evenly over the potatoes.

Continue alternating layers of potatoes and ham until everything has been used.

Step 3 — Add the Creamy Sauce

Pour the warm white sauce evenly over the potatoes and ham, allowing it to seep down between the layers.

Step 4 — Add the Cheese

Sprinkle the shredded cheddar cheese evenly over the top.

Step 5 — Bake Covered

Cover the baking dish tightly with aluminum foil and bake for 30 minutes.

Step 6 — Finish Baking

Remove the foil and continue baking for 20–25 minutes, until the potatoes are completely tender and the cheese is bubbling and golden brown.

Step 7 — Rest & Serve

Let the casserole rest for 5–10 minutes before serving warm.

How to Serve It

Bring the bubbling, golden-topped casserole straight to the table and serve generous scoops directly from the baking dish while the cheese is still stretchy and the sauce is still creamy and hot throughout. The combination of the tender potato layers, the savory ham throughout, the velvety cream sauce binding everything together, and the golden cheddar crust on top makes a presentation that is simultaneously rustic and genuinely beautiful — the kind of casserole that makes everyone reach for a second helping before the first is even finished. Serve as a hearty side dish alongside roasted chicken, baked ham, or grilled pork chops, or serve as a complete main course with a simple green salad and warm crusty bread for a deeply satisfying dinner that needs nothing else alongside it. For another deeply comforting cheesy potato dish, our Cheesy Garlic Scalloped Potatoes delivers an equally creamy, equally golden result.

Leftovers & Storage

Cover the casserole tightly and store in the fridge for up to 4 days. Reheat individual portions in the microwave for 2 to 3 minutes or in the oven at 325°F covered with foil for 15 to 20 minutes until warmed through and bubbling again. This casserole is genuinely one of the greatest next-day meals — the sauce thickens further overnight and develops an even richer, more deeply developed flavor as the potato, ham, and cream sauce continue to meld together. Add a splash of milk before reheating if the sauce has thickened too much during storage to restore it to its original creamy consistency. This casserole freezes well for up to 2 months — portion into individual containers before freezing and thaw overnight in the fridge before reheating gently in the oven.

Make It Even Better (Pro Tips)

• Slice the potatoes as thin and as evenly as possible — 1/8 inch is the ideal thickness that cooks through completely in the bake time and creates the most layers for the sauce to infuse.
• Cook the roux for the full 1 to 2 minutes before adding the milk — this step cooks out the raw flour taste and ensures a smooth, properly thickened sauce without any floury flavor.
• Add the milk gradually while whisking constantly — adding too much liquid at once creates lumps that are difficult to smooth out and can result in an uneven sauce texture throughout the casserole.
• Make sure the sauce coats the back of a spoon before pouring over the potatoes — a properly thickened sauce stays evenly distributed throughout the layers rather than pooling at the bottom of the dish.
• Distribute the ham evenly between each layer rather than concentrating it all in one spot — even distribution means ham flavor and texture in every single bite rather than some bites being all potato and others being all ham.
• Cover tightly with foil during the first 30 minutes — the trapped steam is what cooks the potato layers through properly and keeps the sauce from reducing too aggressively before the potatoes are tender.
• Rest the full 5 to 10 minutes before serving — the sauce thickens slightly and the layers set during resting, producing much cleaner, more beautiful servings than a casserole cut into immediately from the oven.

Easy Ways to Change It Up

• Garlic cream sauce: Add 2 minced garlic cloves to the butter before whisking in the flour for a more aromatic, more deeply savory sauce that takes this casserole to another level entirely.
• Different cheese: Swap the cheddar for Gruyère, fontina, or a sharp white cheddar for a completely different but equally delicious cheese profile that changes the character and sophistication of the finished casserole.
• Heavy cream version: Replace 1 cup of the milk with heavy cream for a richer, more indulgent sauce that is even more luxuriously creamy in every bite — perfect for special occasions and holiday tables.
• Herb addition: Stir a teaspoon of fresh thyme or rosemary into the white sauce before pouring over the layers for a more aromatic, herb-forward version that pairs beautifully with the ham throughout.
• Without ham: Omit the ham entirely for a classic vegetarian scalloped potato casserole — the cream sauce and cheddar are so richly flavored that the casserole is completely satisfying without any meat whatsoever.

Quick Questions

What is the difference between scalloped potatoes and au gratin potatoes?

The terms are often used interchangeably but traditionally scalloped potatoes are made with a cream or white sauce without cheese mixed into the layers — the cheese, if used, appears only on top. Au gratin potatoes traditionally include cheese mixed throughout the layers in addition to the topping. In practice most modern recipes blend both approaches — this recipe uses a white sauce throughout with cheddar on top which combines the best elements of both classic techniques into the most satisfying possible result.

Why are my potatoes still firm after the full bake time?

Firm potatoes after the full bake time are usually caused by slices that were too thick to cook through completely in the allotted time, or by the foil being lifted during the covered bake which releases the steam needed to cook the potatoes through. Always slice as thin as possible — 1/8 inch is ideal — and keep the foil firmly in place for the entire first 30 minutes. If the potatoes are still firm after the full bake, cover again with foil and return to the oven for 10 to 15 more minutes until completely tender.

Can I use canned ham instead of leftover ham?

Yes — canned ham drained and diced works perfectly well in this casserole and produces a very good result. Leftover roasted or baked ham gives the best, most deeply flavored result with the most satisfying texture throughout the casserole. Deli ham slices also work well — stack and dice them into small cubes before layering. Avoid very thinly shaved deli ham as it dissolves almost completely into the sauce during the long bake and loses the pleasant textural presence that makes ham in scalloped potatoes so satisfying.

Make this scalloped potatoes and ham casserole for your next family dinner and discover the most deeply comforting, most satisfying potato dish in your entire recipe collection. Tried it? Leave a comment below and tell me what cheese variation you used! — Ava