If you are searching for that perfect holiday side dish to impress your family and friends, this Christmas Cheddar Scalloped Potatoes Recipe will be your new go-to favorite. Layers of tender, thinly sliced potatoes are soaked in a luscious, creamy sauce infused with garlic, shallots, and fragrant thyme, then topped with sharp cheddar cheese that melts into golden, bubbly perfection. This dish brings all the comforting, cozy flavors you want on a festive table, making every bite a warm hug on a plate.

Ingredients You’ll Need
The magic of this Christmas Cheddar Scalloped Potatoes Recipe lies in its simple, wholesome ingredients that each play a crucial role in building the flavor and texture that make this dish so irresistible.
- Potatoes: I recommend yellow potatoes for their creamy texture and subtle buttery taste that complement the cheese beautifully.
- Cheddar cheese: Sharp cheddar brings a bold, tangy richness that melts perfectly into the sauce.
- Butter: Adds depth to the sauce and helps soften the shallots to develop their sweetness.
- Shallot: Offers a gentle onion flavor with a hint of sweetness, essential for balancing the richness.
- Garlic cloves: Pressed garlic infuses the dish with subtle warmth and depth of flavor.
- Whole wheat flour: Used to create a roux that thickens the sauce for that creamy texture.
- Chicken or vegetable stock: Adds an extra layer of savory flavor to keep the sauce from being too heavy.
- Milk (2%): Keeps the sauce creamy but light enough to highlight the potatoes.
- Salt and black pepper: Simple seasonings to bring out the flavors harmoniously.
- Fresh thyme: The herb’s citrusy, earthy notes elevate this dish to a festive feel, perfect for Christmas dinners.
How to Make Christmas Cheddar Scalloped Potatoes Recipe
Step 1: Prepare Your Oven and Baking Dish
Start by preheating your oven to 400 degrees Fahrenheit. This high heat is key to getting the cheese bubbling and golden on top. Meanwhile, grab a 9×9 inch baking dish, generously grease it with butter or cooking spray, and set it aside. Getting this ready early prevents any sticking and ensures those tender layers of potato cook evenly.
Step 2: Sauté Shallots and Garlic
In a medium skillet, melt two tablespoons of butter over medium heat. Add your finely chopped shallot and cook gently for about 3 to 4 minutes, stirring regularly until soft and fragrant—but don’t let it brown. Then add the pressed garlic, cooking for one more minute to release that savory aroma that will carry through the entire dish.
Step 3: Make the Cream Sauce
In a small bowl, whisk together two tablespoons of whole wheat flour with 2 to 3 tablespoons of chicken stock until smooth. Pour this mixture into the skillet with your shallots and garlic, cooking for 1 to 2 minutes and stirring often to create a fragrant roux. Next, slowly add the remaining half cup of stock and the 1 1/4 cups of milk, along with the salt, pepper, and fresh thyme. Bring everything to a gentle boil and cook until the sauce thickens just a bit, about 2 minutes, stirring to avoid any lumps. Remove from heat when done.
Step 4: Layer the Potatoes and Sauce
Now comes the heart of the Christmas Cheddar Scalloped Potatoes Recipe — layering. Place half of your thinly sliced potatoes evenly on the bottom of the baking dish. Pour half of the creamy sauce over the potatoes, then sprinkle half a cup of grated cheddar cheese. Repeat with the remaining potatoes, sauce, and cheese. This layering technique ensures every forkful is balanced and cheesy.
Step 5: Bake to Golden Perfection
Cover the dish tightly with aluminum foil and bake for 30 minutes. This steam-locking step helps cook the potatoes tender and infuse all those wonderful flavors. After that initial bake, remove the foil and continue baking for another 25 to 30 minutes so the cheese on top can turn golden and bubbly, and the sauce thickens beautifully. When ready, garnish with fresh thyme sprigs before serving.
How to Serve Christmas Cheddar Scalloped Potatoes Recipe

Garnishes
Although the dish is rich in flavors, a little fresh garnish brightens it up perfectly. Sprinkle some fresh thyme leaves or finely chopped parsley right before serving to add a pop of green and a fresh herbal note that complements the creamy, cheesy potatoes.
Side Dishes
These scalloped potatoes are wonderfully versatile and pair fabulously with roast turkey or ham, making them a star Thanksgiving or Christmas side. Complement with sautéed green beans, roasted Brussels sprouts, or even a crisp, tangy salad to balance the richness of the potatoes.
Creative Ways to Present
If you want to impress guests, serve individual portions in small ramekins or mini cast-iron skillets. This not only looks festive but helps with portion control at holiday parties. Adding a sprinkle of paprika or a little extra cheddar crust on top can add a colorful and appetizing touch.
Make Ahead and Storage
Storing Leftovers
After your Christmas Cheddar Scalloped Potatoes Recipe has been enjoyed, store any leftovers in an airtight container in the refrigerator. They keep well for up to 3 days and taste almost as good the next day once reheated. Just cover tightly to prevent the potatoes from drying out.
Freezing
If you’re looking to prep in advance, this dish freezes pretty well. Assemble everything but don’t bake it yet—wrap it tightly in plastic wrap and aluminum foil and freeze for up to 2 months. When ready, thaw in the fridge overnight before baking as directed. This way, you can have a convenient, delicious dish ready for your holiday feast.
Reheating
To reheat, pop the dish into a 350 degrees Fahrenheit oven, covered with foil to prevent over-browning, for about 20 minutes or until warmed through. For that fresh-baked cheese crust, remove the foil during the last 5 minutes of reheating.
FAQs
Can I use different types of potatoes for this recipe?
Absolutely! While yellow potatoes are recommended for their creaminess, you can also use Yukon Gold or even russet potatoes. Just remember that waxy potatoes hold their shape better, while starchy potatoes create a softer texture.
Is it necessary to use whole wheat flour for the sauce?
Not at all. Whole wheat flour adds a slight nuttiness and extra fiber, but you can use all-purpose flour if you prefer. The sauce thickening will work the same way.
Can I make this dish vegetarian?
Yes! Simply substitute the chicken stock for vegetable stock when making the sauce, and you will still get all the rich, savory flavors without any meat.
How thin should I slice the potatoes?
Slicing potatoes about 1/8 inch thick is ideal. Too thick, and they may take longer to cook through; too thin, and they might become mushy. A consistent thickness ensures even cooking and a luxurious bite.
Can I prepare this recipe ahead of time and bake it later?
Definitely. You can assemble the entire dish, cover it tightly, and refrigerate it for up to 24 hours before baking. This makes it a great make-ahead side for the busy holiday season.
Final Thoughts
There is something truly special about a well-made batch of scalloped potatoes, especially when enhanced with sharp cheddar and festive herbs like thyme. This Christmas Cheddar Scalloped Potatoes Recipe is a delicious way to add warmth, comfort, and a pop of cheesy goodness to your holiday table. I encourage you to try this recipe soon—you might find yourself making it every year as a beloved holiday tradition!
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Christmas Cheddar Scalloped Potatoes Recipe
- Prep Time: 20 minutes
- Cook Time: 60 minutes
- Total Time: 1 hour 20 minutes
- Yield: 6 servings
- Category: Side Dish
- Method: Baking
- Cuisine: American
Description
This festive Christmas scalloped potatoes recipe features tender yellow potatoes layered in a rich, creamy cheddar cheese sauce infused with shallots, garlic, and fresh thyme. Baked to golden perfection, it’s the perfect comforting and savory side dish for holiday gatherings.
Ingredients
Potatoes
- 2 pounds yellow potatoes, peeled, washed and sliced into 1/8 inch rounds
Cheese
- 1 cup grated Kraft Natural Cheese Sharp Cheddar
Sauce
- 2 tbsp butter
- 1 shallot, chopped
- 2 garlic cloves, pressed
- 2 tbsp whole wheat flour
- 1/2 cup chicken or vegetable stock (plus 2–3 tbsp for making flour mixture)
- 1 1/4 cups 2% milk
- 1/2 tsp salt
- 1/2 tsp black pepper
- 1 tsp fresh thyme (plus more for garnishing)
Instructions
- Preheat Oven: Preheat your oven to 400°F (200°C) to get it ready for baking the dish.
- Prepare Baking Dish: Grease a 9×9 inch baking dish thoroughly to prevent sticking and set it aside for layering the potatoes.
- Sauté Aromatics: In a medium skillet, melt the butter over medium heat. Add the chopped shallot and cook for 3-4 minutes, stirring frequently, ensuring it does not burn. Add the pressed garlic and cook for an additional 1 minute to release its aroma.
- Make Sauce: In a small bowl, mix the whole wheat flour with 2-3 tablespoons of the chicken stock to form a smooth slurry. Add this mixture to the skillet with the shallot and garlic, cooking for 1-2 minutes while stirring constantly. Slowly pour in the remaining chicken stock, milk, salt, pepper, and fresh thyme. Bring the sauce to a boil and cook for 2 minutes until it thickens slightly, stirring frequently. Remove from heat.
- Layer Potatoes: Arrange half of the sliced potatoes to cover the bottom of the prepared baking dish evenly. Pour half of the creamy sauce over the potatoes and sprinkle with half a cup of grated cheddar cheese. Repeat the layering with the remaining potatoes, sauce, and cheddar cheese on top.
- Bake Covered: Cover the baking dish with aluminum foil and bake in the preheated oven for 30 minutes to allow the potatoes to begin cooking and flavors to meld.
- Bake Uncovered: Remove the foil and continue baking for another 25-30 minutes until the dish is bubbly, golden on top, and the potatoes are tender throughout.
- Garnish and Serve: Sprinkle fresh thyme on top for garnish before serving hot as a deliciously comforting holiday side dish.
Notes
- You can use either chicken or vegetable stock depending on dietary preference.
- Ensure potatoes are sliced evenly to allow for uniform cooking.
- For a vegetarian version, use vegetable stock instead of chicken stock.
- Use a sharp cheddar for best flavor impact in the cheese sauce.
- Make sure not to burn the shallots as it will affect the sauce’s taste.
- Let the scalloped potatoes rest for 5-10 minutes after baking for easier serving.

