Scalloped Potatoes Ham Layers

There's something about the smell of cream sauce simmering on the stove that makes me slow down. I was standing in my kitchen on a gray February afternoon, watching steam rise from a pot, when I realized I was making scalloped potatoes the way my neighbor taught me years ago—not from a box, but properly layered with real cheese and ham. She'd mentioned it casually over the fence while hanging laundry, and something about her confidence made me want to try it myself.

I made this for a potluck once where I arrived worried nobody would touch it, and instead watched three people go back for seconds while making small talk about how their own mothers never bothered with the real version. That's when I understood it wasn't just comfort food—it was the edible version of someone saying they cared enough to spend an afternoon in the kitchen.

Ingredients

• Yukon Gold or Russet potatoes (1.5 kg / 3.5 lbs), peeled and thinly sliced: Yukon Golds stay waxy and hold their shape beautifully, but Russets work too if that's what you have—just watch them so they don't dissolve into the sauce.
• Cooked ham (250 g / 9 oz), diced: Buy a thick slice from the deli counter rather than packaged, the flavor difference is real and worth the small extra cost.
• Unsalted butter (60 g / 4 tbsp): Let it melt slowly over medium heat so the onions turn sweet and golden, not pale and steamed.
• Medium onion, finely chopped: The onion dissolves into the sauce as it cooks, so don't worry about visible chunks—it becomes part of the whole.
• Garlic cloves (2), minced: Add it after the onion softens or it will taste harsh and bitter, a mistake I only made once.
• All-purpose flour (50 g / 1/3 cup): This creates the base for your sauce, so whisk it constantly for a full minute or two to cook out any raw taste.
• Whole milk (700 ml / 3 cups) and heavy cream (120 ml / 1/2 cup): The combination of both gives you richness without being overwhelming—all milk feels thin, all cream feels heavy.
• Salt (1 tsp) and black pepper (1/2 tsp): Taste as you go; the cheese will add saltiness too, so hold back slightly here.
• Ground nutmeg (1/4 tsp): Just a whisper, enough that people ask what that warmth is but can't quite name it.
• Gruyère cheese (200 g / 2 cups), shredded: The star ingredient—nutty, complex, and it melts like silk into the sauce and over the top.
• Sharp cheddar cheese (100 g / 1 cup), shredded: This adds color and tang, a backup note that keeps things interesting.
• Parmesan cheese (30 g / 1/4 cup), grated: Sprinkle this only on top where it can turn golden and crispy under the oven heat.
• Fresh parsley (2 tbsp), chopped: Optional but worth it—a small green surprise that cuts through the richness with one bite.

Instructions

Get your oven ready and prep your dish:

Heat the oven to 180°C (350°F) and rub your baking dish with a little butter so nothing sticks later. This small kindness to future you matters more than you'd think.

Start building the sauce foundation:

Melt the butter in a large saucepan over medium heat, watching it foam gently. Once foaming, add the chopped onion and let it soften for 3–4 minutes, stirring now and then until it turns translucent and smells sweet.

Wake up the garlic:

Stir in the minced garlic and cook for just 1 minute—long enough to smell it but not so long it burns. This is faster than you think.

Build the roux:

Sprinkle the flour over the onion and butter, then whisk constantly for 1–2 minutes so the mixture cooks through and tastes cooked rather than raw and pasty.

Slowly add the liquid:

Pour in the milk and cream gradually while whisking, working slowly enough that lumps don't form. I pour with one hand and whisk with the other, leaning into the rhythm of it.

Thicken and season:

Let the sauce simmer for 3–4 minutes, stirring often, until it coats the back of a wooden spoon and feels luxurious rather than thin. Taste it, add salt, pepper, and nutmeg—this is your moment to adjust.

Melt in the cheese:

Remove from heat and stir in half of the Gruyère and cheddar, letting them melt into the warm sauce until it becomes glossy and rich. Don't add Parmesan yet—it goes on top where it belongs.

Layer the potatoes:

Spread half the sliced potatoes across the bottom of your baking dish, then scatter half the diced ham over them, then pour half your cheese sauce across the whole thing. It looks casual but that's the point.

Build the second layer:

Repeat with the remaining potatoes, ham, and sauce, creating an even second layer that will bake into something tender and connected.

Top with the remaining cheese:

Sprinkle the reserved Gruyère and cheddar evenly across the top, then finish with all the Parmesan so it can turn golden brown and a little crispy.

Bake covered, then uncovered:

Cover the dish with foil and bake for 45 minutes so the potatoes steam and soften without the top drying out. Remove the foil and bake for another 25–30 minutes until the top is golden and you can see the potatoes are truly tender when you push a fork into them.

Rest before serving:

Let it sit for 10 minutes—this is not optional, as it lets everything set just enough to scoop cleanly. Scatter parsley over top if you have it.

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My daughter once asked why I didn't just use the boxed version, and I didn't have a good answer at the time. Now I know it's because every time I make this, I remember standing in that kitchen on a gray afternoon, trusting my neighbor's casual confidence, and learning that some things are worth the extra work.

Make-Ahead and Storage

You can assemble this entire dish the night before, cover it tightly with plastic wrap, and refrigerate it until you're ready to bake. When you pull it from the cold, add 10–15 minutes to the covered baking time since it starts cold. Leftovers keep for three days in the fridge and reheat gently in a 160°C oven until just warmed through—microwaving works but turns the texture chalky.

Variations and Substitutions

Smoked turkey tastes wonderful if ham feels too heavy, and I've also used cooked chicken with a pinch of cayenne pepper when I wanted something slightly different. Some people add mushrooms sautéed with the onions, which sounds unexpected but creates a deeper, earthier dish. You can also stir in a handful of fresh thyme to the sauce if you want a subtle herbal note that bridges the savory and creamy.

Cheese and Flavor Building

The combination of three cheeses might seem fussy, but each one contributes something different—Gruyère brings elegance and nuttiness, sharp cheddar adds tang and color, and Parmesan on top creates that crispy golden finish everyone remembers. If you only have one type of cheese on hand, don't skip the dish; just use all of it and accept that your version will be your version, which is perfectly fine.

• Taste the sauce before assembling and don't be shy about seasoning—the potatoes are neutral, so the sauce is where all the flavor lives.
• If you want to push the flavor forward, add a small pinch of cayenne or a crack of red pepper to the finished sauce for subtle heat.
• Remember that cheese continues to release salt as it melts, so season conservatively at first.

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This dish tastes better on second thought, the kind of food that proves comfort doesn't have to feel guilty or rushed. Make it whenever people matter more than time, and watch how it brings everyone closer to the table.

Recipe Questions & Answers

→ What type of potatoes work best for this dish?

Yukon Gold or Russet potatoes are ideal due to their ability to hold shape while becoming tender and creamy.

→ Can I substitute the ham with another protein?

Yes, smoked turkey or chicken can be used as alternatives without compromising flavor.

→ What cheeses are recommended for the sauce?

Gruyère, sharp cheddar, and Parmesan cheeses blend to create a rich, savory sauce that melts beautifully.

→ How do I ensure the sauce is smooth and lump-free?

Whisk continuously when adding milk and cream to the roux, and cook until thickened to avoid lumps.

→ Can this dish be prepared ahead of time?

Yes, it can be assembled up to one day ahead, covered, and refrigerated before baking.

→ What is the purpose of nutmeg in the sauce?

A small amount of ground nutmeg adds subtle warmth and depth to the creamy sauce.