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Million Dollar Potato Casserole Recipe

4.4 from 128 reviews

Million Dollar Potato Casserole is a rich and creamy baked dish featuring thinly sliced potatoes layered in a luscious mixture of cream cheese, sour cream, and cheddar cheese. This comforting casserole is flavored with garlic and onion powders and topped with melted golden cheddar cheese and fresh chives, making it the perfect indulgent side dish for family dinners or holiday gatherings.

Ingredients

Scale

Potatoes

  • 2 lbs potatoes, peeled and thinly sliced

Cheese Mixture

  • 1/2 cup unsalted butter, melted
  • 8 oz cream cheese, softened
  • 1 cup sour cream
  • 1/2 cup milk
  • 1 tsp garlic powder
  • 1/2 tsp onion powder
  • 1/2 tsp salt
  • 1/4 tsp black pepper
  • 2 cups shredded cheddar cheese, divided

Garnish

  • 1/4 cup chopped fresh chives (optional)

Instructions

  1. Preheat and prepare dish: Preheat your oven to 375°F (190°C). Lightly grease a 9×13 inch baking dish to ensure the casserole does not stick.
  2. Make cheese mixture: In a large bowl, whisk together melted butter, softened cream cheese, sour cream, milk, garlic powder, onion powder, salt, and pepper until the mixture is smooth and well combined.
  3. Combine potatoes and mixture: Add the thinly sliced potatoes to the cream cheese mixture and toss gently, making sure every slice is evenly coated.
  4. Add cheese: Stir in 1 and 1/2 cups of shredded cheddar cheese into the potato mixture to distribute the cheese flavor throughout.
  5. Assemble casserole: Pour the potato and cheese mixture into the prepared baking dish, spreading it evenly to create a uniform layer.
  6. Cover and bake: Cover the baking dish tightly with aluminum foil to trap steam and bake for 45 minutes until the potatoes are tender when pierced with a fork.
  7. Add topping cheese: Remove the foil and sprinkle the remaining 1/2 cup shredded cheddar cheese evenly over the top of the casserole.
  8. Bake uncovered: Return the casserole to the oven uncovered, and bake for an additional 15-20 minutes until the cheese topping is melted, bubbly, and golden brown.
  9. Rest and serve: Remove the casserole from the oven and let it stand for 5-10 minutes to set for easier serving.
  10. Garnish: Optionally garnish with chopped fresh chives before serving to add a fresh, mild onion flavor and color contrast.

Notes

  • Use peeled and thinly sliced potatoes for even cooking and creamy texture.
  • Covering the dish during the initial baking helps the potatoes steam and become tender.
  • Letting the casserole rest after baking helps it firm up and makes serving easier.
  • Fresh chives add color and a subtle onion note but can be omitted if unavailable.
  • For a richer flavor, use full-fat sour cream and cream cheese.

Keywords: potato casserole, creamy potatoes, cheddar cheese casserole, baked potato dish, comfort food, holiday side dish, cheesy potato bake