Cheesy Scalloped Potatoes with Ham

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This recipe for scalloped ham and potatoes is made with layers of tender potatoes, cubed ham, and creamy, cheesy sauce to create the most delicious version of cheesy scalloped potatoes.

Pair Cheesy Scalloped Potatoes and Ham with Roasted Asparagus and a Strawberry Spinach Salad for a meal worthy of Easter Dinner, but easy enough for any night of the week!

Plate with scalloped potatoes, cheese, and ham.

Cheesy Scalloped Potatoes and Ham is a perfect way to change up classic scalloped potatoes into a dish that is worthy of being the star of dinner or a memorable side dish.

Tender potatoes and salty ham are married together perfectly with a homemade creamy, cheesy sauce, making the most delicious Cheesy Scalloped Potatoes that are hearty, substantial, and oh-so cheesy!

Whether you serve these Cheesy Scalloped Potatoes with Ham as a side dish or use it to transform your leftover holiday ham into a new and delicious family meal, these cheesy scalloped potatoes will quickly become a family-favorite recipe.

Notes on Ingredients

Ingredients for scalloped potatoes labeled on counter.

Ham: This recipe for scalloped potatoes with ham is a great time to use up leftover baked ham or Instant Pot Ham. If you do not have leftover ham, use store-bought cubed ham, ham steak, or a thick cut of deli ham.
Potatoes: Use either Russet or Yukon Gold potatoes, as they both have just the right amount of starch to give these scalloped potatoes a creamy, rich finish.
Cheese: Sharp cheddar is best for the cheese sauce, as it really gives the sauce a pronounced cheese flavor. An important tip is to grate the cheese yourself. Pre-shredded cheese is often coated in anti-caking agents and will not melt as uniformly into your sauce. It is worth the extra few minutes it takes to grate the cheese yourself.
Cream/Milk: For rich creamy scalloped potatoes whole milk, half and half, or a combination of milk and cream is best. That said, I have used skim and 2% milk with success, but the dish was not as rich or creamy.

How to Make Cheesy Scalloped Potatoes and Ham

Step One: Prepare Potatoes and Ham

Scrub the potatoes well and peel them if desired.
For the potatoes to cook evenly, you want to slice them into ⅛-inch thick slices. I recommend using a mandoline to thinly slice the potatoes to make your job easier, but of course, a sharp knife will work as well.
Dice the ham into small bite-size chunks.

Ham and potatoes layered in baking dish.

Step Two: Make Cheese Sauce

Do not be intimidated by the thought of making a homemade cheese sauce--it is really much easier than it may sound.

Melt the butter in a large stock pan over medium heat.
Whisk in the flour to form a thick paste, AKA a roux. Let the roux cook for 1 minute, whisking constantly, to remove the raw flour taste from the sauce.
Slowly add the milk, along with the seasonings whisking to incorporate.
Simmer the sauce over medium heat, whisking continuously, until the mixture is bubbly and begins to thicken.
Remove the sauce from the heat and stir in the cheese, stirring until the cheese is melted.

Side by side photo showing cheese sauce after simmering.

Step Three: Assemble

Layer half the potatoes into a buttered casserole dish. Sprinkle the potatoes evenly with half the ham. Pour half of the cheese sauce over the potatoes and ham and use your hands or a spoon to gently push down the potatoes and ham into the sauce. Repeat the layers.
For extra cheesy flavor, top with additional shredded cheese.

Side-by-side dish showing layered potatoes with cheesy sauce and then topped with extra cheese.

Step Four: Bake

Cover tightly with foil and bake for one hour. Remove the foil and bake for an additional 25-35 minutes or until the potatoes are fork-tender and the sauce is bubbly.

White baking dish with scalloped potatoes, ham and cheese.

Serving Suggestions

Obviously, this recipe for Scalloped Ham and potatoes is a great recipe to make with leftover ham. But it also is a favorite side at a holiday meal when served with Baked Glazed Ham, Roasted Carrots, and a Holiday Salad.

Cheesy Scalloped Potatoes with Ham also shouldn't be reserved for simply the holidays or leftovers! Pair with a side of Green Beans Almondine or Roasted Broccoli for a family-favorite weeknight meal.

Recipe FAQs

Do the potatoes need to be parboiled?

Because the potatoes are so thinly sliced, I do not find it necessary to parboil the potatoes before baking the scalloped potatoes. The potatoes will become fork-tender, yet retain their shape and texture. Plus the potatoes will not become waterlogged and instead absorb the delicious flavor of the cheese sauce.

Is the addition of ham necessary?

No! Simply omit the ham from the recipe and enjoy delicious Cheesy Scalloped Potatoes.

Can you prepare these using the Instant Pot?

Yes! I have a recipe for Instant Pot Scalloped Potatoes that can be made with the addition of ham and cheese to replicate this recipe for Cheesy Scalloped Potatoes and Ham.

Do you need to peel the potatoes?

No! I opt to peel the potatoes for a smoother consistency, but it is a personal preference.

More Favorite Recipes Using Leftover Ham

If you enjoyed this Ham and Scalloped Potato recipe, please leave a comment and a review below. I love hearing from you!

This recipe was originally published in 2016 and updated in 2023.

Cheesy Scalloped Potatoes and Ham

Notes on Ingredients