Go Back
+ servings

Cheesy Diced Potatoes

If you’re looking for the ultimate cheesy potato casserole, you’ve just struck gold—Yukon gold, to be exact. This recipe isn’t your average throw-it-together side dish; it’s a next-level comfort food experience crafted by someone who knows their way around creamy sauces, melting cheeses, and flavor-packed magic without ANY canned soups!  With step-by-step photos, expert tips, and a carefully crafted technique, this recipe guarantees a from-scratch potato casserole that puts every “cream of” shortcut to shame.
Course Side Dish
Cuisine American
Prep Time 40 minutes
Cook Time 40 minutes
Total Time 1 hour 20 minutes
Servings 8 servings

Ingredients

  • 4 pounds Yukon gold potatoes, peeled and chopped into 1/2-inch pieces (about 9 cups)
  • 1 tablespoon salt for boiling
  • 6 tablespoons unsalted butter (may sub half olive oil)
  • 1/3 cup all-purpose flour
  • 2 cups milk
  • 1 14.5 oz. can (1 3/4 cups) low sodium chicken broth
  • 1 tablespoon cornstarch
  • 1 1/2 teaspoons Dijon mustard
  • 1 teaspoon Worcestershire sauce
  • 2 tablespoons chopped fresh chives or 2 tsps dried
  • 2 tsp EACH chicken bouillon, dried parsley
  • 1 1/2 teaspoons salt
  • 1 tsp EACH onion powder, garlic powder
  • 1/2 teaspoon pepper
  • Pinch of cayenne
  • 2 cups freshly shredded sharp cheddar cheese (semi-packed)
  • 3 oz. (1 packed cup) freshly shredded Gruyere cheese
  • 1 cup sour cream

Topping

Instructions

  • Sour Cream: Measure before prepping the potatoes so it can come to room temperature.
  • Boil Potatoes: Add the diced potatoes to a large pot or Dutch oven and add enough cold water to cover them by about 1 inch. Cover and bring to a boil, then uncover and add one tablespoon of salt. Continue to boil (uncovered) until the potatoes are fork tender but not falling apart, about 4-5 minutes after the water starts to boil. Immediately drain the potatoes in a colander. (While the potatoes are cooking, you can continue with the recipe.)
  • Prep: Preheat the oven to 350°F. Lightly spray a 9x13 baking dish with nonstick cooking spray; set aside.
  • Make Sauce: Melt the butter in a Dutch oven over medium heat. Whisk in the flour, then cook while stirring for 2 minutes. Reduce the heat to low, then gradually whisk in the milk and 1 ½ cups of chicken broth (eyeball it). Whisk the cornstarch with the remaining chicken broth, then add to the pot, followed by the Dijon, Worcestershire sauce, chives, chicken bouillon, and all spices.
  • Thicken Sauce: Bring the sauce to a simmer, whisking constantly, until it has thickened, about 5 minutes.
  • Add Cheeses: Turn off the heat, and whisk in the cheddar a handful at a time until melted, followed by the Gruyere until melted. If it’s not melting smoothly, return the heat to low and whisk until melted. Off heat, whisk in the sour cream until blended, then stir in the cooked potatoes. Adjust seasonings to taste (we like a little more salt).
  • Assemble: Transfer the potatoes to the prepared baking dish and spread them into an even layer. Evenly top with one cup of shredded cheddar.
  • Bake: Cover the casserole with foil and bake at 350 degrees for 25 minutes, until hot and bubbly and the cheese is melted. Let the casserole stand uncovered for 10 minutes to set a bit before serving. Meanwhile, make the panko topping:
  • Panko topping: Melt the butter and olive oil together over medium heat in a large skillet. Add the panko and stir to coat. Continue cooking until the crumbs become golden brown. Evenly sprinkle over the potatoes. Garnish with fresh parsley if desired.

Video