Cheesy Potatoes are the ultimate comfort food! Tender potatoes in an irresistibly creamy cheese sauce, topped with buttery breadcrumbs for a perfect crunch.


author’s note
These “Party Potatoes” Disappear in Minutes!
If you’ve ever had Funeral Potatoes, you already know how comforting a creamy, cheesy potato casserole can be. These Cheesy Potatoes are made with freshly diced Yukon gold potatoes instead of hash browns, which gives them a hearty, homemade feel and a soft, tender texture that still holds up beautifully in the oven.
Also known as “party potatoes,” this dish is the one I reach for anytime I need a guaranteed crowd-pleaser. It has that same rich, cheesy goodness as Au Gratin Potatoes, but with a bit more bite from the diced potatoes.
And the topping is my favorite part. I borrowed the buttery breadcrumb idea from my One-Pan Tuna Casserole and finished it off with a sprinkle of fresh thyme. The golden, crunchy topping adds the perfect contrast to the creamy potatoes underneath and it’s the kind of bite everyone goes back for seconds of.

Ingredients
| Ingredient | Notes & Swaps |
|---|---|
| Gold (Yukon) Potatoes | Also called Yukon or yellow potatoes. Russets work, too. |
| Butter | Gives richness to the sauce; don’t substitute margarine. |
| Flour | Thickens the cheese sauce—avoid skipping this step. |
| Whole Milk | Adds creaminess; 2% works but don’t use skim. |
| Sharp Cheddar Cheese | Sharp or extra sharp for bold flavor. Freshly shred for the best melt. |
| Thyme | Optional, but adds a lovely fresh touch. Dried thyme works too. |
| Panko Breadcrumbs | For crunch. Swap with crushed corn flakes or potato chips. |

How To Make Cheesy Potatoes
- Prep Potatoes: Heat oven, grease a pan, peel, dice, and measure potatoes.
- Make Sauce: Melt butter, mix in seasonings, then whisk in flour and milk. Once thickened, add cheese and coat potatoes.
- Layer & Bake: Layer potatoes and cheese in the dish, cover, and bake.
- Add Topping: Toast breadcrumbs in butter, sprinkle over potatoes with the rest of the cheese, and bake once more.
- Serve: Let sit a few minutes, then enjoy!
Quick Tip
I bake these Cheesy Potatoes in the oven, but for a crockpot version, check out these Crockpot Au Gratin Potatoes!

What Goes With Cheesy Potatoes
Serve Cheesy Potatoes anywhere you’d serve mashed potatoes!
I typically serve it alongside a meat main (like pulled pork, grilled chicken, a flat iron steak) with a big garden salad.
These potatoes are also a great addition for a holiday dinner:
- Add to your Thanksgiving or Christmas table along with Crockpot Turkey Breast, Winter Salad, and the best Thanksgiving Dressing.
- Add to your Easter spread along with Deviled Eggs, Roasted Asparagus, and easy Drop Biscuits.

Storage
- Leftovers: The cheesy potatoes are best served hot! As they cool, the topping softens and the potatoes soak up more sauce. Store in the fridge for 5–7 days and only add topping to the part you’ll eat.
- Freezing: Freeze leftovers in an airtight container for up to 2–3 months.

More Delicious Side Dishes:
Side Dishes
Cornbread Recipe
Desserts
Raspberry Fluff
Side Dishes
Roasted Broccoli Recipe
Salads
Italian Salad Recipe

Cheesy Potatoes
Video
Equipment
- 9 x 9-inch baking pan
- Large pot nonstick
Ingredients
- 5 cups diced gold potatoes 1/2-inch cubes, see note 1
- 3 tablespoons unsalted butter
- 1/2 teaspoon onion powder
- 1/2 teaspoon garlic powder
- 1/2 teaspoon ground mustard
- 3 tablespoons flour
- 1/2 teaspoon salt
- 1/4 teaspoon pepper
- 2 cups whole milk see note 2
- 2-1/2 cups shredded sharp Cheddar cheese divided, see note 3
- 1-1/2 teaspoons fresh thyme optional
- 3/4 cup panko breadcrumbs
- 2 tablespoons unsalted butter
Instructions
- Preheat oven to 350°F. Grease a 9×9-inch pan with cooking spray. Peel potatoes and dice into 1/2-inch pieces. Tightly pack potatoes in measuring cups to ensure a full 5 cups.
- Melt butter in a large nonstick pot over low heat. Add garlic powder, mustard powder, onion powder, salt, and pepper. Sauté for 1 minute or until fragrant. Sprinkle in flour and whisk constantly for 1 minute until smooth; do not let it brown. Gradually pour in 1 cup milk while whisking constantly. Once smooth, increase heat to medium-high and add the other cup of milk gradually. Stir occasionally until the mixture comes to a boil.
- Once boiling, reduce heat to medium-low and stir constantly for 2 minutes or until thickened (see note 4). Remove from heat and let cool for 2 minutes. Stir in 1 cup Cheddar cheese until melted and smooth. Add diced potatoes and stir to coat. Mix in fresh thyme if using.
- Add 1/3 of the potatoes to the prepared pan and sprinkle with 1/2 cup Cheddar cheese. Repeat with another 1/3 of the potatoes and 1/2 cup of cheese. Top with remaining potatoes, smoothing to an even layer. Cover with foil and bake for 1 hour and 15 minutes.
- Melt 2 tablespoons of butter in a large skillet over medium-high heat. Add panko and 1/4 teaspoon salt. Stir constantly until lightly browned, then remove from heat and set aside.
- Remove foil and pierce the center of the pan with a table knife to check if the potatoes are tender. If not, bake for 5–10 more minutes and check again. Remove from oven and gently stir the potatoes with a spatula, then smooth into an even layer. Sprinkle with the remaining 1/2 cup Cheddar cheese and the panko topping. Bake for another 10–15 minutes, until golden and bubbly. Remove and let stand for 5–10 minutes before serving. The sauce will thicken as it stands. Enjoy!
Recipe Notes
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
Variations
Switch Things Up
- Make cheesy scalloped potatoes by slicing the potatoes thinly (1/8-inch) instead of cubing them!
- Add smoked sausage, ground beef, or rotisserie chicken after 1 hour and 15 minutes of baking. Stir in the meat, add the topping, and finish baking.
- Use crushed potato chips or corn flakes instead of breadcrumbs.
- Sprinkle bacon bits into the cream sauce or on top at the end.



















Looking forward to trying recipes
These are the best potatoes I’ve ever had in my entire life!