If you’re craving a rich, comforting, and incredibly creamy side dish, this Million Dollar Potato Casserole is the recipe you need. Layered with tender potatoes, velvety cream cheese, buttery sauce, and melty cheddar, this dish transforms simple pantry staples into a luxurious, crowd-pleasing favorite. Whether it’s a weeknight dinner, holiday gathering, or potluck moment, this casserole guarantees warm smiles and empty plates.

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Ingredients

2 lbs potatoes, peeled and thinly sliced
½ cup unsalted butter, melted
8 oz cream cheese, softened
1 cup sour cream
½ cup milk
1 tsp garlic powder
½ tsp onion powder
½ tsp salt
¼ tsp black pepper
2 cups shredded cheddar cheese, divided
¼ cup chopped fresh chives (optional, for garnish)

Instructions

Preheat the oven to 375°F (190°C) and lightly grease a 9×13-inch baking dish.
In a large bowl, whisk together the melted butter, cream cheese, sour cream, milk, garlic powder, onion powder, salt, and pepper until smooth.
Add the thinly sliced potatoes and gently toss to coat every slice evenly.
Stir in 1½ cups of the shredded cheese.
Transfer the mixture to the prepared baking dish and spread it evenly.
Cover tightly with aluminum foil and bake for 45 minutes, or until the potatoes are tender.
Remove the foil, sprinkle the remaining ½ cup of cheese on top, and bake uncovered for 15–20 minutes, until golden and bubbly.
Rest for 5–10 minutes before serving.
Garnish with fresh chives if desired.

Pro Tips

Uniform slices are key: Use a mandoline for evenly thin potatoes that cook perfectly.
Don’t skip the resting time: It helps the casserole set and become easier to cut.
Choose quality cheddar: A sharp or extra-sharp variety adds deeper flavor.
Bake covered first: This steams the potatoes so they turn tender without drying out.

Why This Recipe Works

Cream cheese and sour cream create an ultra-rich, velvety texture.
The casserole uses basic ingredients yet tastes restaurant-worthy.
It pairs effortlessly with chicken, beef, pork, and holiday entrées.
Perfect for feeding a crowd without extra effort.

Substitutions & Variations

Cheese Swaps

Monterey Jack
Colby-Jack
Pepper Jack (for mild heat)

Add-Ins

Cooked crumbled bacon
Sautéed onions or leeks
Fresh herbs like thyme or parsley
Thinly sliced ham

Diet-Friendly Adjustments

Use reduced-fat cream cheese and sour cream
Swap cheddar for a low-moisture cheese blend

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Make-Ahead, Storage & Reheating Guide

Make Ahead

Assemble the casserole up to 24 hours ahead.
Cover tightly and refrigerate.
Add 10–15 minutes to the first bake if it’s cold.

Storage

Refrigerate leftovers in an airtight container for 3–4 days.

Reheating

Oven: 300°F (150°C), covered with foil until warmed through.
Microwave: Heat individual servings in short intervals to avoid drying out.

Serving Ideas

Roasted chicken or turkey
Glazed ham
Grilled or pan-seared steak
Fresh green salad
Steamed broccoli or roasted vegetables

It also shines on holiday tables like Thanksgiving, Christmas, and Easter.

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Nutrition (Per Serving Estimate)

Approximate for 1/8 of casserole:

Calories: 450
Carbohydrates: 30g
Protein: 12g
Fat: 32g
Saturated Fat: 19g
Fiber: 3g
Sugar: 5g
Sodium: 480mg
Cholesterol: 95mg

Frequently Asked Questions

Can I use a different kind of potato?

Yes! Russet or Yukon Gold potatoes are ideal because they get soft and creamy while baking.

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Can I freeze this casserole?

Freezing isn’t recommended because the creamy sauce may separate. For best results, prepare fresh or make ahead and chill.

Is this dish spicy?

No, it’s mild and savory. You can add jalapeños or red pepper flakes if you want heat.

Can I make this casserole gluten-free?

Absolutely—no flour is needed, making it naturally gluten-free as long as all ingredient labels are safe.

This Million Dollar Potato Casserole is comfort food at its best—creamy, cheesy, and guaranteed to impress every time. Whether you’re preparing a holiday feast or a simple family dinner, this dish brings warmth and flavor to any table.