Loaded Potato Casserole Recipe

This Loaded Potato Casserole Recipe is the perfect combination of buttery potatoes, sautéed onions, crispy bacon, and gooey cheese, all baked together in a rich, creamy sauce. Topped with more cheese and finished under the broiler for that golden brown perfection, it’s a dish your whole family will love. Whether you’re planning a Sunday dinner, Thanksgiving spread, or just need a hearty side, this casserole is guaranteed to be a hit.

Why You’ll Love This Recipe

This isn’t your average potato dish—it’s loaded with cheesy potatoes and crispy bacon bits, making it incredibly satisfying. The creamy sauce, made with butter, flour, and both milk and heavy cream, is smooth and rich without being overwhelming. And the best part? It’s customizable! You can add your favorite potato toppings, like sour cream or green onions, or switch out the cheddar for Monterey Jack or Colby Jack cheese.

The casserole comes together easily, using simple ingredients like russet potatoes, a little cream cheese, and sharp cheddar, making it an excellent go-to for busy weeknights or special occasions. The delicious flavor of bacon and cheese, combined with the smooth texture of the potatoes, will keep everyone coming back for seconds.

Ingredients Needed For Loaded Potato Casserole

By combining simple ingredients you’re going to get amazing results, especially with this traditional potato casserole. Here’s what you’ll need to get started.

  • Potatoes – you can either use Russet Potatoes here or frozen diced potatoes (to make this dish more quickly).
  • Thick Cut Bacon – bacon makes everything better. You could also add smoked sausage to make this a meal!
  • Yellow Onion – perfectly adds that oniony flavor without being overpowering.
  • Butter – this is used to saute the onions but also to make the base of the sauce.
  • All-Purpose Flour – to thicken the sauce.
  • Milk – for creaminess.
  • Heavy Cream – more creaminess but thicker.
  • Cream Cheese – you could also use sour cream here. Tangy delicious flavor.
  • Salt and Pepper – to taste.
  • Nutmeg – just a pinch!
  • White Cheddar Cheese – I used Kerry Gold Dubliner cheddar…..ahh-mazing.

Variations

  • Swap sharp cheddar cheese for Monterey Jack or Colby Jack for a different flavor.
  • Use Yukon gold potatoes for a creamier texture or mix in some sweet potatoes for a touch of sweetness.
  • Add a bit of sour cream or onion powder to the sauce for extra tang and flavor.
  • Top with mozzarella cheese or even potato skins for a crispy, cheesy finish.

How to Make Loaded Potato Casserole

For full recipe details, including ingredient measurements, see the printable recipe card down below. Here are my step by step instructions for making this loaded potato casserole.

1. Cook Potatoes

Place the diced potatoes into a small pot. Pour in enough cold water to cover the potatoes. Bring to a boil, then reduce to a simmer for 10-15 minutes or until they are fork-tender. Drain and set aside. Wipe out the pot with a paper towel and set aside.

2. Preheat Oven + Cook Bacon

Preheat oven to 375° F. Prepare a casserole dish by greasing it with butter or nonstick cooking spray. Set aside. 

While potatoes simmer, cook bacon (either on the stove top, air fryer, or cook bacon in oven). Remove to a paper towel and pour off excess grease, leaving a bit in the pan for onions. 

3. Saute Onions

Add 1 tablespoon of butter to the same pan and sauté onions until tender, 5-7 minutes. Remove from heat.

4. Make the Cheese Sauce

Place the small pot used to cook the potatoes over medium heat. Melt in 2 tablespoons butter. Sprinkle in flour and whisk to create a paste. Cook for 1 minute. Whisk in milk. Increase heat to medium-high and continue whisking until sauce thickens.

Reduce heat and stir in cream, cream cheese, salt, black pepper, nutmeg, and 1/2 cup grated cheddar cheese. Stir until the cheeses melt and the sauce is smooth. 

5. Assemble Casserole

Pour cooked potatoes, bacon, onions and cheese sauce into a large bowl. Stir to coat. Pour the entire contents of the bowl into prepared casserole dish. Top with remaining 1/2 cup of sharp cheddar cheese

6. Bake + Serve

Bake for 20-30 minutes, covered with aluminum foil. Then, remove the foil and place it under the broiler to brown the top, if desired. Garnish with green onion and serve hot.

Storage + Make Ahead Directions

Store any leftovers in an airtight container in the fridge for up to 4 days. Reheat in the oven or microwave.

To Freeze: You can freeze loaded potato casserole before or after baking. Wrap it tightly in plastic wrap and store in an airtight container for up to 3 months. To reheat, thaw overnight in the fridge and bake until heated through.

To Make Ahead: Prepare the casserole as directed, but instead of baking, cover with plastic wrap and refrigerate for up to 24 hours. When ready, bake it straight from the fridge.

More Potato Recipes to Try!

  • Twice Baked Potatoes
  • Crockpot Mashed Potatoes
  • Scalloped Potatoes
  • Potatoes Au Gratin
  • Pan Fried Potatoes
  • Funeral Potatoes
  • Smashed Potatoes
  • Buttery Mashed Potatoes

This Loaded Potato Casserole is perfect for any holiday meal or as a hearty side dish. Try it with some chicken breasts for a complete meal, or serve it alongside your favorite mains. The printable recipe card is below. Have a great day, friends! 🙂

If you make this recipe, I would really appreciate it if you would give it a star rating and leave your review in the comments! If you have a picture of your finished dish, post it on Instagram using the hashtag #laurenslatest and tagging me @laurens_latest.

Loaded Potato Casserole Recipe

Loaded Potato Casserole with bacon and cheese is a perfect blend of ingredients for the ultimate comfort food. Creamy, dreamy and easy to make. Enjoy!

Ingredients

  • 2 large Idaho potatoes peeled and cubed in 1/2 inch pieces (a little over 2 cups diced)
  • 6 slices bacon
  • 1 1/2 cups onion finely diced
  • 1 tablespoon butter

for the sauce-

  • 2 tablespoons butter
  • 2 tablespoons all purpose flour
  • 1 1/2 cups milk
  • 1/4 cup heavy cream
  • 3 oz cream cheese
  • salt to taste
  • black pepper to taste
  • pinch nutmeg
  • 1 cup sharp cheddar cheese freshly grated, divided
  • 2 green onions diced, for garnish

US Customary – Metric

Instructions

  • Place the diced potato into a small pot. Pour in enough cold water to cover the potatoes. Bring to a boil, then reduce to a simmer for 10-15 minutes or until they are fork-tender. Drain and set aside. Wipe out the pot with a paper towel and set aside.

  • Preheat oven to 375° F. Prepare a casserole dish by greasing it with butter or nonstick spray. Set aside.
  • While potatoes simmer, cook bacon (either on the stove top, air fryer, or oven). Remove to a paper towel and pour off excess grease, leaving a bit in the pan for onions.

  • Add 1 tablespoon of butter to the same pan and saute onions until tender, 5-7 minutes. Remove from heat.

  • Place the small pot used to cook the potatoes over medium heat. Melt in 2 tablespoons butter. Sprinkle in flour and whisk to create a paste. Cook for 1 minute. Whisk in milk. Increase heat to medium-high and continue whisking until sauce thickens. Reduce heat and stir in cream, cream cheese, salt, black pepper, nutmeg, and 1/2 cup grated cheddar cheese. Stir until the cheeses melt and the sauce is smooth.

  • Pour cooked potatoes, bacon, onions and cheese sauce into a large bowl. Stir to coat. Pour the entire contents of the bowl into prepared casserole dish. Top with remaining 1/2 cup of sharp cheddar cheese.

  • Bake for 20-30 minutes, covered with aluminum foil. Then, remove the foil and place it under the broiler to brown the top if desired. Garnish with green onion and serve hot.

Nutrition

Calories: 462kcal | Carbohydrates: 33g | Protein: 14g | Fat: 31g | Saturated Fat: 16g | Polyunsaturated Fat: 2g | Monounsaturated Fat: 9g | Trans Fat: 0.3g | Cholesterol: 81mg | Sodium: 393mg | Potassium: 764mg | Fiber: 2g | Sugar: 6g | Vitamin A: 849IU | Vitamin C: 11mg | Calcium: 260mg | Iron: 1mg

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