Chili Relleno Casserole

If you’ve ever ordered chili rellenos at a Mexican restaurant and wondered if you could skip the hours of stuffing and frying peppers at home, this casserole is the answer. It layers whole green chilies with sharp cheddar and Monterey Jack, then bakes them under a Bisquick custard until the top puffs up golden and set. You get the same mild heat and melted cheese as the classic dish, without breading and frying a single pepper. It’s an easy weeknight dinner or potluck dish that comes together with basic pantry ingredients.

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Traditional chili rellenos start with whole peppers that get stuffed with cheese, battered, and fried one at a time, which is a lot of standing at the stove for a weeknight meal. This casserole version takes the same core flavors, mild green chilies and melted cheese, and turns them into a layered bake instead. Whole canned chilies go on the bottom, shredded cheddar, and Monterey Jack layer in between, and a simple Bisquick, milk, and egg mixture gets poured over the top and baked until set.

The result is closer to a savory, cheesy soufflé than a traditional relleno, but it captures the same combination of tender chili and melted cheese in a format that takes minutes to assemble. It’s a good fit for a Mexican-inspired dinner, a potluck dish, or a side for grilled meats.

Why this recipe works

Layering whole chilies with cheese first, then pouring the Bisquick custard over the top, lets the mixture puff into a light, soufflé-like texture as it bakes instead of turning dense. Sharp cheddar brings bold flavor, while Monterey Jack melts smoothly; using both together balances flavor with texture. Canned green chilies, both whole and diced, give consistent mild heat without the guesswork of raw peppers, and diced chilies mixed into the custard spread that flavors evenly through every bite.

Recipe Ingredients

Here’s what I put in my casserole:

• Sharp cheddar cheese – provides a bold, tangy base flavor and melts well.
• Monterey Jack cheese – Adds creamy mildness and superior melting quality
• Butter – Prevents sticking and adds richness to baked casserole
• Large eggs – Create a custard-like base that holds the casserole together
• Whole milk – Provides creaminess and helps create proper custard consistency
• Bisquick baking mix – Forms a light, fluffy texture without complicated batter work
• Whole green chilies – Deliver authentic mild chili flavor and tender texture
• Diced green chilies – Distribute chili flavor throughout the custard mixture evenly

How to Make Chili Relleno Casserole

This is such an easy recipe to make. The prep work is a breeze. Mix the ingredients and then layer them in the casserole dish. Here are the recipe steps:

1. Combine Cheddar and Monterey Jack cheeses in a bowl.
2. Spread melted butter in a 13 x 9-inch casserole dish.
3. Lay whole chilies on top of the melted butter. Sprinkle two-thirds of the cheese on the whole green chiles.
4. Mix the milk, eggs, and Bisquick until smooth.
5. Stir in the diced chilies, then pour the egg batter over the cheese.
6. Sprinkle the remaining cheese on top.
7. Bake at 325 degrees for 45 minutes.

Storing Leftovers & Reheating Instructions for Chile Rellenos Casserole

• Reheating Options: Microwave individual portions for 1-2 minutes or reheat in 350°F oven until warmed through completely.
• Refrigerator Storage: Cover tightly and refrigerate in an airtight container for up to 4 days maximum for best quality and food safety.
• Freezing Method: Wrap unbaked casserole in plastic wrap and foil, freeze up to 3 months before baking as directed.

What do you serve with Chili Relleno Casserole?

This could be a meal all on its own. But if you want some side-dish ideas, try one of these.

• Spanish Rice Recipe
• Mexican Style Refried Beans
• Easy White Queso Recipe
• Corn Air Fryer Recipe
• Casa Ole Salsa

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• Sour Cream Noodle Bake
• Taco Spaghetti Casserole
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Popular Copycat Recipes

• TGI Fridays Jack Daniels Dipping Sauce
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Find even more Mexican restaurant recipes and casserole dishes to make and enjoy.