Potato Casserole
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Cheesy Potato Casserole with Bacon, a perfect blend of ingredients for the ultimate comfort food. Creamy, dreamy and easy to make. Enjoy!
You guys. You’re gonna want to sit down for this one! It’s a doozie! A ridiculously creamy, cheesy, bacony, hot mess of a doozie. Cheesy Potato Casserole is a cross between scalloped potatoes, potatoes au gratin, funeral potatoes, and just a plain casserole. A little bit of everything to make one killer concoction. Perfect for any weeknight or during the holidays!

Potato Casserole
By combining simple ingredients you’re going to get amazing results, especially with this traditional potato casserole. Here’s what you’ll need to get started.
- Potatoes – you can either use Idaho Potatoes here or frozen diced potatoes (to make this dish more quickly).
- Thick Cut Bacon – bacon makes everything better. You could also add smoked sausage to make this a meal!
- Yellow Onion – perfectly adds that oniony flavor without being overpowering.
- Butter – this is used to saute the onions but also to make the base of the sauce.
- All-Purpose Flour – to thicken the sauce.
- Milk – for creaminess.
- Heavy Cream – more creaminess but thicker.
- Cream Cheese – you could also use sour cream here. Tangy delicious flavor.
- Salt and Pepper – to taste.
- Nutmeg – just a pinch!
- White Cheddar Cheese – I used Kerry Gold Dubliner cheddar…..ahh-mazing.
How to Make Potato Casserole
- Start out this potato casserole by chopping up some potatoes into small cubes. Place the diced potatoes into a small pot. Pour in enough cold water to cover potatoes. Cover with lid and bring to boil. Reduce to simmer for 5 minutes or until they barely are fork-tender. Drain and set aside. Wipeout pot with a paper towel and set aside.
- While the potatoes are cooking, render out some bacon. And through the magic of my food blog, it’s magically cooked!
- Dump out any remaining bacon grease and cook up some onions in butter. 5 minutes later and these are brown and soft. Onions cooked in butter is perfection. That is all.
- The potatoes should be just about done. You want these to barely be fork tender. They’re going to cook more in the oven, so don’t overdo it in the pot. Everyone repeat after me: “PAR-BOIL”. You could also just use frozen diced potatoes.
- Throw the onions and cooked bacon on top of the potatoes, and take a big whiff. Your kitchen should be smelling divine right about now.
Cream Sauce
- To start making the cream sauce for the potato casserole, melt some butter in a pot. I used the same pot from the potatoes….just wipe it out with a paper towel. Lazy, dish-hating ladies unite!
- Sprinkle in a little flour and cook out the raw flavor for a minute or two.
- Switch over to a whisk and pour in some milk, salt, pepper, and nutmeg. Increase the heat to medium-high to get this sauce to thicken faster. Keep stirring.
- Once the sauce is thick and delicious, plop in some cream cheese, and some heavy cream.
- Grated white cheddar cheese. I used Kerry Gold Dubliner cheddar…..ahh-mazing. Whisk the sauce together until the cheese has melted and is all smooth and creamy. And delicious.
- Taste for seasonings and adjust as needed.
Baking
- Now to finish off your potato casserole pour the sauce all over the potatoes, onions, and bacon. Let it be known that this picture makes me a happy girl. HOME STRETCH, my peeps! A few more steps ’til heaven.
- Once you get everything coated in that lovely sauce, pour it into a buttered baking dish.
- and top with more cheese. Of course. Is there any other way? I think not.
- Bake at 375 degrees covered for 20-30 minutes then pop the top and broil that bad boy until it’s bubbly and brown.
- Serve your potato casserole hot. Sing praises. Rejoice.

More Potato Recipes to Try!
- Twice Baked Potatoes
- Crockpot Mashed Potatoes
- Perfect Scalloped Potatoes Recipe
- Delicious Potatoes Au Gratin
- Pan Fried Potatoes
- Funeral Potatoes
- Crispy Mashed Potato Rosettes
- Smashed Potatoes
- Buttery Mashed Potatoes
Here’s the handy dandy printable that you all must print this very moment. You’re welcome:

Potato Casserole
Ingredients
- 2 large potatoes cubed in 1/2 inch pieces
- 2 slices thick cut bacon sliced
- 1 1/2 cups yellow onion diced
- 1 tablespoon butter
for the sauce-
- 2 tablespoons butter
- 2 tablespoons all purpose flour
- 1 1/2 cups milk
- 1/4 cup heavy cream
- 3 oz. cream cheese or sour cream
- salt & pepper to taste
- pinch nutmeg
- 1 cup white cheddar cheese divided {such as Kerry Gold Dubliner}
Instructions
- Place the diced potato into a small pot. Pour in enough cold water to cover potatoes. Cover with lid and bring to boil. Reduce to simmer for 5 minutes or until they barely are fork-tender. Drain and set aside. Wipeout pot with a paper towel and set aside.
- While potatoes simmer, render out bacon slices and brown. Remove to a paper towel and pour off excess grease. Saute onions in 1 tablespoon butter in the same pan until tender, 5-7 minutes. Remove from heat.
- Place small pot you cooked potatoes in over medium heat. Melt in 2 tablespoons butter. Sprinkle in flour and whisk to create a paste. Cook 1 minute. Whisk in milk. Increase heat to medium-high and continue whisking until sauce thickens. Reduce heat and stir in cream, cream cheese, salt, pepper, nutmeg, and 1/2 cup grated cheese. Stir until cheeses melt and sauce is smooth.
- Pour cooked potatoes, bacon, onions and sauce into a large bowl. Stir to coat. Pour entire contents of bowl into greased baking dish. Top with remaining 1/2 cup of cheese. Bake at 375 degrees for 20-30 minutes covered with foil. Place under broiler to brown the top if desired. Serve hot.
[…] https://laurenslatest.com/creamy-cheesy-bacon-potato-casserole-aka-funeral-potatoes/ […]
[…] Anyways, take a peek at my recipe and see how yours varies. And if you want a completely homemade version of this, check out my Cheesy Bacon version here. […]
[…] Anyways, take a peek at my recipe and see how yours varies. And if you want a completely homemade version of this, check out my Cheesy Bacon version here. […]
Made this for xmas dinner and it was so BLAND! I even added extra bacon to it. You could barely taste the cheese. Dubliner is a very good cheese but it does not work in this recipe. I wouldn’t make this again.
Made these for my SO’s family and everyone LOVED it to say the least 😛 definitely making again
This was the very first recipe that I made of yours…and they are now legendary in our family!!! Everyone always looks at me funny when I call them “Funeral Potatoes”….but my standard reply is, “You will be so glad you are alive to try them!” Thank you again for a great recipe!!! Merry Christmas to you and yours!!! 🙂
Making these tomorrow. Thanks for the recipe!
Is white cheddar the same as extra sharp cheddar? That was the only white cheddar I could find.
Thanks!
As long as it’s white cheddar, it should be fine: sharp, medium or mild 🙂
We made these for Easter and they were a huge hit!!!
Why in the world would you waste that great bacon grease, in favor of sauteeing the onions in butter?!?
Otherwise, this is right on.
Instead of boiling the potatoes, season them and the onions and give them about an 8 minute covered cook in the microwave. Easier and you keep the nutrients. .. and yes these can be done in crock pot, you just won’t get the brown top, but still all the deliciousness! We call these party potatoes and there are several versions. … all of them wonderful!
My only critique would be, why toss the bacon grease and add butter? just cook the onions in the bacon grease. Also, if you’re lazy just use the frozen southern style hashbrowns. Dicing and undercooking is for people with no kids and no jobs 🙂
any chance you could make a crockpot version of this for us busy mommas!?! I can’t wait to try this!
sounds so delicious, can this be placed in a crock pot?
Sounds wonderful. Can they be made ahead of time? ( day before?)
I was thinking of adding chicken and corn what do you think about that?
For variation I add spicy sausage like chorizo, broccoli and cauliflower. Becomes a main dish and not a side dish.
[…] no one will complain about. It’s just a lovely roasted and flavored piece of meat, especially with these. Or this. Orrrrrr this. […]
These were amazing– and I used the leftovers for the base of the BEST “loaded baked potato soup” EVER!!
The only change I would consider making would be rending the onions in the bacon fat, these sound delicious!
These potatoes look amazing and I can’t wait to try them on Sunday for our Fathers Day celebration. Do you think they turn out ok if I made them in the morning but kept them in fridge until the evening and then baked them?
Those look like the best potatoes EVER!!!
I love reading your recipes! Not only do they look delicious, but you’re so entertaining!
Oh man, now this is comfort food at its best!
foodgasm. period.
OMG Lauren, this looks amazing!
I imagine these are supposed to make a side dish, but I’m definitely alright with considering them a meal all on their own. Love this!
Virtually anything that is baked in a casserole dish is extremely pleasing to me…but you throw in potatoes and cheese and I’m eating out of the casserole dish fork-in-hand. This looks spectacular! Good luck on your contest!
Oh my gosh, looks so incredibly creamy and delicious!
These look soooo creamy and delicious! Plus anything with bacon and cheese is a definite bonus in my books!
Wow, This turned out perfect! What a delicious combination of ingredients!
I’ve never heard the term funeral potatoes…to me, these are holiday potatoes! Although, I hope people enjoy them at my funeral too 🙂
Oh man, yum! My aunt makes a potato casserole around the holidays that everyone loves, but I cringe at the list of ingredients. This is a much better alternative!
omgosh, i LOVE LOVE kerrygold dubliner cheese, seriously so luscious and amazing. you are too for making this drool-worthy casserole! 😉
These look so good! Do you think 2% milk would be ok to use, or should I stick with whole? Thanks 🙂
Oh Lauren, what are you doing to me (and my diet!)?!
Mmm. . .comfort food!!
Perfect comfort food!
This looks way too delicious and cheesy. I could eat that whole casserole!
This looks so freakin good! Loving the potato (loving it all)
Oh my. This looks phenomenal!!
Where on earth did the name funeral potatoes come from? What an awful name for such an amazing dish! Gimme! 🙂
This is the type of food that I could completely survive on…
Oh. My. Gawd. This is toooooo sinful! I think it’d be perfect for a big meal like Thanksgiving, when I have lots of other people to share it with (and stop me from eating the whole thing myself) 😉
Anything with potatoes and bacon is sure to be a winner!!! Love this version way better than the ones that use the creamed soups and sour cream…. this looks much creamer and much more delicious and inviting to eat!
Yum!
I started following your blog a month or so ago….everything looks so good on here. I love potatoes like this. Actually, I love potatoes in any form, ha. Thanks for posting!
Holy Moly! Those potatoes look incredible!!! I think I gained 5 pounds just looking at your mouth-watering photos. I must try these soon.
this looks so delicious and comforting!
Ugh … I should not be looking at these right now. Potatoes are my ultimate weakness and here I am trying to cut back on potatoes to drop 5 more pounds this month.
You are the best! These look absolutely DEEEELISH!
These look perfect for eating directly from the pan!