
Description
This dish is a rich, creamy, and cheesy twist on classic scalloped potatoes, infused with vibrant green chile for a pleasant southwestern flavor. The thinly sliced potatoes are layered carefully in a creamy sauce with roasted green chiles and plenty of melted cheese, creating a tender, flavorful, and slightly spicy casserole. This recipe is great as a comforting side dish or even a main course for a cozy dinner.
Ingredients
- Potatoes, peeled and sliced thinly
- Butter (unsalted recommended)
- All-purpose flour
- Milk
- Heavy cream
- Green chiles (harvested, roasted, peeled, seeds removed and finely chopped)
- Garlic powder
- Onion powder
- Salt
- Black pepper (freshly ground for best flavor)
- Grated cheese (a mix of cheeses that melt well, such as cheddar and Monterrey Jack)
[Instructions:]
Step 1: Prepare the Potatoes
Begin by preparing your potatoes. Wash them thoroughly, then peel away the skin with an appropriate peeler or paring knife. On a cutting board, slice the peeled potatoes as thinly as you can — ideally between 1⁄8 and 1⁄4 inch thick. Uniform slices help the dish cook evenly throughout. If you have a mandoline slicer, this is a great time to use it safely with the guard in place.
Step 2: Preheat Your Oven
Set the oven to 350°F (about 180°C) so it has time to come up to temperature while you prepare the rest of the dish.
Step 3: Make the Base Roux for the Sauce
Place a medium-sized saucepan over medium heat and add the butter. Allow the butter to melt completely and just begin to foam, being careful not to let it brown. Sprinkle the flour into the melted butter and whisk constantly for a couple of minutes until it forms a smooth paste (called a roux). This paste should look glossy and begin to bubble slightly but should not darken; cooking the flour briefly helps eliminate the raw flour taste.
Step 4: Add the Dairy to Form the Creamy Sauce
Once the flour and butter are blended, gradually pour in the milk and heavy cream. Whisk constantly as you add the liquid to avoid lumps. Continue whisking until the mixture is completely smooth and starts to thicken. You’re aiming for a sauce that coats the back of a spoon — this creamy base is what will give your scalloped potatoes that luxurious texture.
Step 5: Season the Sauce
Add the garlic powder, onion powder, a generous pinch of salt, and freshly ground black pepper to the sauce. Adjust these to taste — don’t be afraid to season boldly here, because this sauce is the backbone of your flavor.
Step 6: Incorporate the Cheese
Turn the heat down slightly and begin adding the grated cheese a handful at a time, whisking after each addition until the cheese has fully melted and the sauce is smooth again. The mixture should be rich, velvety, and flowing, with no visible clumps of cheese.
Step 7: Add Your Green Chiles
Once your cheese sauce is ready, fold in the chopped green chiles. These provide a mild heat and aromatic freshness that cuts through the richness of the cheese. Make sure the chiles are evenly distributed through the sauce.

Step 8: Layer the Dish
Take a baking dish and lightly grease the bottom and sides with a bit of butter or non-stick spray. Begin assembling your scalloped potatoes by laying down a single layer of the thin potato slices, slightly overlapping them so there are no gaps. Spoon a portion of the cheese and chile sauce over this first layer, using just enough to coat all the potatoes.
Continue this layering process — potatoes, then sauce — until all of the potatoes and sauce are used up. Make sure the final layer is covered with sauce so that they won’t dry out in the oven.
Step 9: Bake the Casserole
Place the assembled dish into your preheated oven. Bake at 350°F (180°C) for about 1 hour to 1 hour and 15 minutes. You’re looking for the potatoes to be tender when pierced with a fork and for the top to develop a gentle golden color. If the top begins to brown too quickly, you can tent a sheet of foil loosely over the dish partway through baking.
Step 10: Rest Before Serving
When done, remove the casserole from the oven and allow it to sit for about 5 minutes before serving. This short rest time helps the sauce settle and makes it easier to slice and serve individual portions. The finished dish should be creamy and soft, with the chile adding an aromatic, flavorful note and the cheese pulling everything together.
Serving Suggestions
Serve these scalloped potatoes warm, ideally with a simple green salad or as a hearty side to roasted chicken or beef. The creamy sauce and melted cheese also make this a satisfying stand-alone vegetarian meal.