Cheesy Scalloped Potatoes and Ham Casserole (From Scratch)

Cheesy scalloped potatoes and ham casserole is wonderful comfort food that transforms simple pantry ingredients into an irresistible one-pot meal. This homemade version surpasses any boxed mix with its creamy, rich sauce and perfectly tender potato layers. Not only is it a fantastic way to use leftover ham, but adding fresh green peppers creates a flavor depth you can’t get from store-bought versions. Every forkful delivers the perfect balance of creamy potatoes, savory ham, and melted cheese.

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Why This Recipe Works

This scalloped potatoes and ham recipe stands out because of the incredible flavor brought by adding chopped green peppers to the creamy cheese sauce. That wonderful addition creates complexity and freshness you’ll never get from boxed recipes. The homemade white sauce provides a silky, rich base that perfectly coats each potato slice, while the cheese melts into golden, bubbly perfection. Using the right potato variety and proper slicing technique ensures tender, creamy results every time.

Ingredients

For the White Sauce Base:

• Butter – Creates the roux foundation and adds rich, creamy flavor throughout the sauce
• All-purpose flour – Acts as a thickening agent to create a smooth, velvety sauce consistency
• Salt – Enhances all flavors and balances the richness of dairy ingredients
• Ground black pepper – Adds subtle heat and aromatic depth to complement other flavors
• Milk – Provides creamy base that transforms into luxurious sauce when properly thickened

For the Filling:

• Cooked ham – Delivers savory protein and smoky flavor that defines this comfort dish
• Green bell pepper – Contributes fresh crunch and mild sweetness that brightens rich sauce
• Onion – Adds aromatic depth and subtle sweetness that enhances overall flavor profile
• Shredded cheddar cheese – Provides sharp, tangy flavor and creates golden, bubbly top

For the Base:

• Russet potatoes – Offer ideal starchy texture that becomes perfectly creamy when baked

What type of potatoes should you use?

Chances are you already have some russet potatoes on hand. Russet potatoes are ideal for this recipe, they are dense, starchy, somewhat creamy, and they are everywhere.

You don’t have to go hunt down these potatoes. You can also use Yukon gold potatoes if you like, they have a slightly buttery flavor.

I don’t recommend using red potatoes for this recipe because they tend to be waxy. They won’t give you the creamy soft potato texture that we all love.

How to Make Cheesy Scalloped Potatoes and Ham Casserole

1. Peel, wash, and slice potatoes into ¼-inch slices. If you have a mandolin, you may want to use it. Place sliced potatoes in a large bowl. 
2. Melt butter in a large saucepan over low heat.
3. Add flour, salt, and pepper. Cook, stirring constantly, for about 1 minute.
4. Remove from heat gradually stir in milk.
5. Return to heat and cook until thickened and bubbly.
6. Add ham, onion, green pepper, and cheese. Fold into the sauce.
   

   

7. Pour the mixture over the potatoes in a large bowl.
8. Stir gently then transfer to a buttered casserole dish.
   

   

9. Cover with foil. 
10. Bake at 350 degrees for 30 minutes.
11. Uncover and bake for 1 hour.

Storage & Reheating Instructions for Leftovers

• Refrigerator Storage: Place the casserole in a baking dish and cover with a matching lid or aluminum foil. For food safety, store it in the refrigerator for up to 4 days.
• Reheating Method: Reheat covered in 350°F oven for 20-30 minutes until heated. Add a splash of milk if the sauce appears too thick. Avoid microwaving large portions as heating becomes uneven.
• Freezing: You can freeze the assembled unbaked casserole for up to 2 months. Thaw overnight before baking, and add 15-20 minutes to the cooking time.

Do you love potato casseroles? Try these recipes!

• Cheesy Hashbrown Potatoes
• Creamy Mashed Potato Casserole
• Potato Gratin Recipe

Popular Potato Side Dishes

• Air Fryer Baked Potatoes
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• Crockpot Cheesy Potatoes Recipe
• Greek Potatoes
• Homemade Potato Wedges
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• Taco Bell Potatoes

Check out my easy casserole recipes and the best side dish recipes here on CopyKat!