Country Ham Scalloped Potato Casserole

Name: Country Ham Scalloped Potato Casserole
Prep time: 20 min
Cook time: 1 h 40 min
Total time: 2 h 10 min
Yield: 6 servings
Ingredients: 2 pounds russet potatoes, peeled if desired and sliced about 1/8 inch thick; 1 cup fully cooked country ham, diced; 1 cup shredded sharp cheddar cheese, divided; 1 cup milk; 1 cup heavy cream; 1 small onion, finely chopped; 2 tablespoons butter, plus a little for greasing the dish; 2 tablespoons all-purpose flour; Up to 1 teaspoon salt, only as needed; country ham may provide enough; 1/2 teaspoon black pepper; 1/2 teaspoon garlic powder

By Corinne Griffith

October 15, 2026 7 Min Read

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This country ham scalloped potato casserole layers thinly sliced russet potatoes with diced ham, a homemade onion cream sauce, and sharp cheddar cheese. The potatoes soften as they bake, the ham seasons the sauce, and a final uncovered bake gives the top a golden, cheesy finish.

It is a comforting option for a family dinner or a weekend meal when you have time to let a casserole bake. Serve it as a hearty side or make it the center of the plate with a green vegetable and salad. The ingredient list is simple, but even slicing and a little patience make a difference to the texture.

Why This Ham and Potato Casserole Works

Russet potatoes bring starch that helps the sauce cling to the layers. A small amount of flour thickens the milk and cream before baking, while sharp cheddar adds flavor without requiring a large amount of cheese. The ham is scattered through both layers so you get a little in each serving.

Homemade cream sauce: Butter, flour, milk, cream, and softened onion form the base.
Plenty of savory flavor: Country ham gives the potatoes a distinctive cured-ham taste.
A golden topping: Save most of the cheddar for the uncovered portion of baking.
Flexible serving: Spoon it alongside a simple main or serve it as a light main dish with vegetables.

Ingredients and Substitutions

2 pounds russet potatoes, peeled if desired and sliced about 1/8 inch thick
1 cup fully cooked country ham, diced
1 cup shredded sharp cheddar cheese, divided
1 cup milk
1 cup heavy cream
1 small onion, finely chopped
2 tablespoons butter, plus a little for greasing the dish
2 tablespoons all-purpose flour
Up to 1 teaspoon salt, only as needed; country ham may provide enough
1/2 teaspoon black pepper
1/2 teaspoon garlic powder

Russet potatoes: Slice them about 1/8 inch thick so the layers cook evenly. Yukon Gold potatoes are another option and tend to keep a slightly firmer texture. Whichever variety you choose, use slices of similar thickness throughout.

Country ham: Use fully cooked ham, cut into small pieces. Country ham is salt-cured and may be much saltier than an ordinary baked ham, so treat the listed salt as optional. Regular cooked ham also works, with a milder flavor.

Milk and cream: The combination gives the sauce a rich consistency. Whole milk works well here. Replacing the cream with milk makes a lighter sauce, but it may be thinner and less rich.

Sharp cheddar: Freshly shredded cheese generally melts smoothly. A cheddar and Monterey Jack blend works for a milder finish, or replace some cheddar with Gruyere for a nuttier flavor.

How to Make Country Ham Scalloped Potato Casserole

1. Prepare the potatoes and pan

Preheat the oven to 350 degrees F. Grease a 9-by-13-inch baking dish. Scrub the potatoes, peel if desired, and slice evenly about 1/8 inch thick. Use a mandoline with its hand guard or a sharp knife. Have all the ingredients ready so the sliced potatoes can go straight into the casserole.

2. Make the onion cream sauce

Melt the butter in a skillet or saucepan over medium heat. Add the onion and cook for 3 to 5 minutes, until softened. Sprinkle in the flour and stir for 1 minute. Gradually whisk in the milk, followed by the cream, until smooth. Add the pepper and garlic powder. Bring to a gentle simmer and cook for 2 to 3 minutes, stirring, until lightly thickened. Taste a small spoonful with a piece of the fully cooked ham before deciding whether to add any salt.

3. Build the layers

Arrange half the sliced potatoes in overlapping layers in the greased dish. Scatter over half the ham and about 1/3 cup cheddar. Spoon half the warm cream sauce evenly over the layer. Repeat with the remaining potatoes, ham, and sauce. Reserve the remaining 2/3 cup cheese for the top after the covered baking stage. Press the potatoes gently into the sauce.

4. Bake covered

Cover tightly with foil and bake for 60 minutes. Carefully lift a corner of the foil and test the center with a thin knife. The potatoes should be nearly tender. If they are still firm or crunchy, cover again and continue baking in 10- to 15-minute intervals before adding the topping.

5. Brown the cheesy top

Remove the foil, sprinkle with the reserved cheddar, and bake uncovered for 20 to 30 minutes, until the potatoes are completely tender, the sauce bubbles around the edges, and the top is golden. The center should reach 165 degrees F. If the cheese browns too quickly, loosely tent with foil.

6. Rest before serving

Let the casserole stand for about 10 minutes before spooning onto plates. The sauce will settle and thicken slightly as it rests. Serve warm.

Tips for Tender Potatoes and Creamy Sauce

Make the slices even. Thick potato slices need longer than thin ones, and uneven slicing leaves you with some layers that are soft while others are still firm. A mandoline is useful, but always use its guard. A sharp knife also works if you take your time.

Whisk the sauce gradually. Cook the flour with the butter and onion briefly, then add the milk in stages. Stir until smooth before adding more liquid. Bring the finished sauce to a gentle simmer rather than a hard boil.

Keep the covered bake covered. Tight foil traps steam around the potatoes. Test the middle before moving to the final browning stage; if the potatoes are still crunchy, they need more covered cooking time.

Rest before serving. The sauce will look looser straight from the oven. A 10-minute rest lets it settle, making it easier to spoon onto plates. This is a creamy casserole rather than a firm potato gratin that slices into neat blocks.

Country Ham and Salt: What to Know

Country ham brings concentrated saltiness. Instead of adding the full teaspoon of salt automatically, taste the cooked cream sauce with a piece of fully cooked ham first. You may decide it needs only a pinch, or none at all.

Check the ham label, too. Curing does not mean every country ham is ready to eat. This recipe starts with fully cooked ham; prepare any cook-before-eating product according to its directions before using it here. The USDA ham guide explains the different product types.

What to Serve with Ham Scalloped Potatoes

Balance the rich potatoes with something fresh or green: steamed broccoli, green beans, a cabbage slaw, or a salad with a sharp vinaigrette. If serving this casserole as a side, a simply seasoned chicken dish lets the ham and cheddar remain the focus.

For another potato dinner, try Chefmaniac’s smoked sausage and potato bake. If you want a hands-off potato side for another occasion, bookmark the crockpot scalloped potatoes. You can find more baked dinner ideas in the Casserole Recipes collection.

Make-Ahead and Storage

You can assemble the casserole up to a day ahead. Cool the sauce promptly, layer the dish, cover, and refrigerate at 40 degrees F or below. Coat the potatoes well with sauce to limit discoloration. Keep the topping cheese separate until the covered baking stage is finished.

A chilled casserole usually needs additional covered oven time. Follow your bakeware manufacturer’s guidance about moving a cold dish into a hot oven, especially with glass. Test the potatoes and the center temperature rather than relying only on the timer.

Refrigerate leftovers within 2 hours in shallow covered containers and use within 3 to 4 days. If the ham was already a leftover, account for its prior storage time; baking does not reset that clock. Reheat covered portions with a small splash of milk if needed, until the center reaches 165 degrees F, following USDA guidance for leftovers.

Freezing is possible, but creamy potato casseroles can become grainier and the potatoes may soften after thawing. For best texture, enjoy this one fresh or refrigerated. If freezing cooked portions, cool promptly, pack airtight, and use within about 2 months for quality. Thaw in the refrigerator before reheating.

Frequently Asked Questions

Can I use regular cooked ham instead of country ham?

Yes. Substitute the same amount of diced fully cooked ham. It will usually be milder and less salty, so adjust the sauce seasoning accordingly.

Do I have to peel the potatoes?

No. Peel them for a smoother texture or scrub them well and leave the skins on if you prefer. Thin, even slices matter more than peeling.

Why are the potatoes still hard?

The slices may be too thick, or the casserole may need more time under tight foil. Keep baking covered until the center layers are nearly tender before finishing the cheese topping.

Can I add more cheese?

Yes, though the listed cup gives the dish cheddar flavor without overwhelming the cream sauce. Add extra sparingly, especially with salty country ham.

Why is the sauce runny?

Make sure the flour sauce thickens slightly before layering, bake until the potatoes are tender, and let the dish rest before serving. A casserole straight from the oven will look looser than one that has rested.

Is this scalloped potatoes or potatoes au gratin?

Scalloped potatoes commonly use a cream sauce, while au gratin versions often emphasize cheese and a browned top. This recipe combines a creamy scalloped-potato base with cheddar, so it borrows elements of both.

A Creamy Casserole for the Dinner Table

Spoon the casserole onto plates while it is warm and creamy, with a little of the golden cheese topping on each serving. The ham, potatoes, and onion sauce make a satisfying combination that needs only a simple side to round out dinner.