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The Best Cheesy Ham and Potato Casserole

A cozy bowl of homemade Cheesy Ham and Potato Casserole being served for a family dinner.

A rich and cheesy recipe for a classic ham and potato casserole. The dish is made by combining par-boiled diced potatoes with cubed ham and shredded sharp white cheddar cheese in a large baking dish. A savory, homemade cream sauce is created on the stovetop by sautéing onions and garlic, making a roux, and whisking in milk and spices like smoked paprika and ground mustard. The sauce is poured over the ham and potato mixture, and the casserole is baked covered, then finished uncovered with an additional layer of melted cheese.

Ingredients

  • 2 pounds potatoes (Russet or Yukon Gold)
  • 2 cups cubed ham
  • 1 and 1/2 cups shredded sharp white cheddar cheese, divided
  • 3 Tablespoons unsalted butter
  • 3/4 cup chopped yellow onion
  • 3 garlic cloves, minced
  • 3/4 teaspoon salt
  • 1/2 teaspoon fresh ground pepper
  • 1/2 teaspoon smoked paprika
  • 1/2 teaspoon ground mustard
  • 1 teaspoon dried parsley
  • 3 Tablespoons all-purpose flour
  • 2 cups whole milk
  • Optional for garnish: chopped fresh parsley, green onion, or chives

Instructions

  1. Peel the potatoes and cut them into 3/4-inch pieces. Place them in a medium pot, cover with water, and bring to a boil. Boil for just 5–6 minutes until slightly softened, but not fully tender. Drain the potatoes.
  2. Grease a 9×13-inch or similar 3 to 4-quart oven-safe dish. Add the warm, drained potatoes, the cubed ham, and 1 cup of the shredded cheese. Gently toss to combine and set aside.
  3. Preheat the oven to 375°F (191°C).
  4. Make the Sauce: In a large skillet or saucepan over medium heat, melt the butter. Add the onion and garlic and cook for about 3 minutes, until the onions have softened.
  5. Stir in the salt, pepper, smoked paprika, ground mustard, parsley, and flour until combined and the flour has absorbed the fat.
  6. Reduce the heat to low, then slowly stir in the milk. Let the sauce simmer for 3–5 minutes, until it has thickened to a gravy consistency. Remove from the heat.
  7. Assemble and Bake: Pour the warm sauce over the ham and potato mixture in the baking dish. Toss gently to coat everything.
  8. Cover the dish with aluminum foil and bake for 30 minutes.
  9. Remove the foil, sprinkle the remaining 1/2 cup of cheese on top, and return the casserole to the oven. Bake for another 5–10 minutes, uncovered, until the cheese is melted and the casserole is bubbling.
  10. Remove from the oven, garnish with fresh herbs if desired, and let it rest for a few minutes before serving.

Notes

  • Par-boiling the potatoes before baking is a key step that ensures they are perfectly tender in the finished casserole without becoming mushy.
  • The two-stage baking process—covered first, then uncovered—allows the casserole to heat through evenly before the cheese topping is browned.
  • Leftovers can be stored in the refrigerator for up to 1 week and reheated in the oven or microwave.
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