These crowd-pleasing loaded scalloped potatoes with bacon are creamy, cheesy, and so delicious! They're easy to make with simple steps and the ultimate side dish for any occasion and holiday dinners like Christmas or Thanksgiving!

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These cheesy scalloped potatoes (au gratin as the French call them) are going to be your family's new favourite side dish (say goodbye to boring roasted potatoes and hello to creamy, cheesy, loaded potatoes with bacon)!
My mom's old fashioned potatoes are super popular so I decided to make this loaded version! It's a similar recipe with a just as deliciously creamy sauce and cheesy potatoes, but this one has caramelized onions and loads of crispy bacon pieces in it!
They're so yummy, and my boyfriend and I can never stop ourselves from getting seconds... sometimes even thirds. They're definitely for a potato lover like us and truly next level!
Ingredients
- Russet Potatoes (Yukon Gold and white potatoes also work)
- Bacon (this recipe uses actual bacon, but if you're looking for a short cut you could also use bacon bits (ready/pre-cooked bacon crumble)
- Onion (white or yellow will work in this recipe)
- Butter
- Salt & Pepper
- All-Purpose Flour
- Whole Milk (2%)
- Sharp Cheddar Cheese (gruyere also tastes yummy but any cheese will work)
- Optional Garnish (green onions or chives both taste great)
See the recipe card below for the ingredient measurements.
Step-by-Step Instructions
Step 1 - Prepare: Preheat the oven to 350°F and grease an 8x8 baking dish with cooking spray.
Step 2 - Fry: Cook bacon slices in a pan over medium to high heat until crispy. Once cooked, keep the oil in the pan and transfer the bacon to a plate lined with paper towel. Once cooled, chop into small pieces. Next, sauté the onions in the bacon oil over low to medium heat until they are caramelized (soft and translucent).


Step 3 - Make the cream sauce (roux): While the onions are cooking, make the roux. Melt butter in a small pot on low heat. Once the butter melts, add the salt, pepper, and flour and stir until smooth. Increase the heat to high and add the milk, a ½ cup at a time, stirring constantly. Once it reaches a boil, boil for 1-2 minutes and continue stirring until thick. Then, remove the pot from the heat.


Step 4 - Layer the potatoes: Add a layer of the potatoes to the baking dish, slightly overlapping, then add ⅓ of the cream sauce mixture, ⅓ of the onions, and ⅓ of bacon. Repeat this step two more times and then evenly sprinkle the cheddar cheese on top.




Step 5 - Bake the potatoes: Bake for 45 minutes covered and 15 minutes uncovered until the cheese starts to look golden.


Storage and Leftovers
Store any leftovers in an airtight container or covered tightly with tin foil or plastic wrap in the fridge for up to one week. Leftovers can be reheated uncovered in the oven at the same temperature until warm or in the microwave on a microwave-safe plate.
It's not recommended to freeze the potatoes in the freezer as they become mushy after thawing.
Frequently Asked Questions
Usually if it's not thickening, the ratios of fat (butter) and flour are off and it just needs to simmer longer. If that doesn't work then you can make a slurry with cornstarch and water to thicken it.
The potatoes need time to rest and set up after baking. You should wait at least 10-15 minutes before serving.

Related Recipes
If you like these loaded scalloped potatoes, then you should also try my mom's old fashioned scalloped potatoes or these scalloped potatoes recipe with ham, which I love making during the holidays when I have leftover ham!
Some other delicious and easy potato side dishes you may like are these roasted potatoes with onion soup mix, roasted baby potatoes, dill pickle potato salad, red skin garlic mashed potatoes, and the no egg potato salad.
Print📖 Recipe
Loaded Scalloped Potatoes with Bacon
- Total Time: 1 hour 10 minutes
- Yield: 4-6
Description
These loaded scalloped potatoes with bacon are a cheesy and delicious side dish for any meal on any occasion!
Ingredients
- Russet Potatoes: Approx. 2 lbs (5 medium potatoes), thinly sliced
- Bacon: 8 slices
- Onion: 1, thinly sliced
- Butter: ¼ cup
- Salt: ¾ teaspoon
- Pepper: ¼ teaspoon
- Flour: 3 tablespoons
- Milk: 2.5 cups
- Cheddar Cheese, shredded: 1.5 cups
Instructions
- Prepare: Preheat the oven to 350°F and grease an 8x8 baking dish with cooking spray.
- Fry: Cook bacon slices in a pan over medium to high heat until crispy. Once cooked, keep the oil in the pan and transfer the bacon to a plate lined with paper towel. Once cooled, chop into small pieces. Next, sauté the onions in the bacon oil over low to medium heat until they are caramelized (soft and translucent).
- Make the cream sauce (roux): While the onions are cooking, make the roux. Melt butter in a small pot on low heat. Once the butter melts, add the salt, pepper, and flour and stir until smooth. Increase the heat to high and add the milk, a ½ cup at a time, stirring constantly. Once it reaches a boil, boil for 1-2 minutes and continue stirring until thick. Then, remove the pot from the heat.
- Layer the potatoes: Add a layer of the potatoes to the baking dish, slightly overlapping, then add ⅓ of the cream sauce mixture, ⅓ of the onions, and ⅓ of bacon. Repeat this step two more times and then evenly sprinkle the cheddar cheese on top.
- Bake the potatoes: Bake for 45 minutes covered and 15 minutes uncovered until the cheese starts to look golden.
Notes
If you're using tin foil to cover the potatoes with to bake, spray the underside of the tin foil with cooking spray to keep the cheese from sticking to the tinfoil during baking.
Thinly slice the potatoes to ensure they cook through. I just use a knife, but you may consider using a mandolin to help slice them thin!
Cook the bacon until it's very crispy, as the texture will taste better when it's firmer.
The heavier the milk percentage the creamier the potatoes will be and the easier it'll be to make the roux. This recipe works with 2% but it also works with half and half (10%) or heavy cream.
You know the roux is ready when it's thickened.
The onions caramelize and soften easier when you cook them on low.
Nutrition facts are for informational purposes only. We are not responsible for any errors. We have tested the recipe for accuracy, but your results may vary. Please note that this is not medical or nutrition advice. Seek advice from a licensed professional if you need advice. We are not liable for any damages caused by your use of this content.
- Prep Time: 10 minutes
- Cook Time: 1 hour
- Category: Dinner, Lunch, Side Dish
- Method: Bake
- Cuisine: American








Andrea says
I love my classic old fashioned scallop potatoes recipe, but this one with bacon takes it to the next level! So yummy! What did you think? 🙂