Cheesy Scalloped Potatoes and Ham

Cheesy Scalloped Potatoes and Ham is a delicious, easy, cheesy recipe for scalloped potatoes made with layers of potatoes, ham, and a homemade cheddar cheese sauce.

Cheesy Scalloped Potatoes with Ham is a perfect way to change up traditional 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! It is a dish my family can never seem to get enough of!

Whether you serve these Cheesy Scalloped Potatoes with Ham as a side dish or use it to transform your leftover holiday ham into a delicious family meal, these cheesy scalloped potatoes will hit a home run!

Ingredients Needed

• 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 a 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. However, I have used skim and 2% milk with success.

How to Make Cheesy Scalloped Potatoes and Ham

Step One: Prepare Potatoes and Ham

• Scrub the potatoes well and peel if desired. I leave the peels on my potatoes for extra nutrients, but it is a matter of personal preference.
• In order 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.
• Layer half the potatoes into a buttered casserole dish. Sprinkle the potatoes evenly with half the ham and repeat the layers.

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.

Step Three: Assemble and Bake

• Pour 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. This will ensure that the scalloped potatoes and ham do not dry out as they bake.
• Sprinkle with paprika for color and a bit of flavor if desired.
• 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.

Do you Need to Parboil the Potatoes?

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.

However, if you want your potatoes to be falling apart tender, you can opt to parboil your potatoes before baking. I recommend parboiling the potatoes whole in salted, simmering water for 7 to 9 minutes. Drain, let the potatoes cool, and then thinly slice. You don't want to slice your potatoes prior to parboiling, as they will become waterlogged.

More Recipes for Leftover Ham

• Baked Ham Roll
• Easy Monte Cristo Sandwich
• Easy Baked Chicken Cordon Bleu
• Ham and Cheese Hot Pockets
• Instant Pot Ham and Bean Soup

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 but was updated in 2022 with new tips.