Potato Casserole

5 from 22 votes

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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

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.

Diced Potatoes

How to Make Potato Casserole

  1. 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.
  2. While the potatoes are cooking, render out some bacon. And through the magic of my food blog, it’s magically cooked!


  1. 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.

Sauteed Onions

  1. 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.
  2. 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.

Potato Casserole Filling

Cream Sauce

  1. 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!
  2. Sprinkle in a little flour and cook out the raw flavor for a minute or two.


  1. 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.
  2. Once the sauce is thick and delicious, plop in some cream cheese, and some heavy cream.


  1. 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.
  2. Taste for seasonings and adjust as needed.

White Cheddar Cheese


  1. 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.

Cream Sauce

  1. Once you get everything coated in that lovely sauce, pour it into a buttered baking dish.

How to Make Potato Casserole

  1. and top with more cheese. Of course. Is there any other way? I think not.

Cheesy Potato Casserole

  1. Bake at 375 degrees covered for 20-30 minutes then pop the top and broil that bad boy until it’s bubbly and brown.
  2. Serve your potato casserole hot. Sing praises. Rejoice.
Potato Casserole

More Potato Recipes to Try!

Here’s the handy dandy printable that you all must print this very moment. You’re welcome:

Potato Casserole
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5 from 22 votes

Potato Casserole

Cheesy Potato Casserole with Bacon, a perfect blend of ingredients for the ultimate comfort food. Creamy, dreamy and easy to make. Enjoy!
servings 6 side servings
Prep Time 30 minutes
Cook Time 20 minutes
Total Time 50 minutes


  • 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}


  • 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.


Calories: 392.47kcal | Carbohydrates: 25.13g | Protein: 13.09g | Fat: 27.38g | Saturated Fat: 15.37g | Cholesterol: 78.02mg | Sodium: 335.82mg | Potassium: 716.13mg | Fiber: 3.82g | Sugar: 5.35g | Vitamin A: 798.6IU | Vitamin C: 16.98mg | Calcium: 271.16mg | Iron: 4.42mg
Course: Side Dish
Cuisine: American
Keyword: cheesy potato casserole, how to make potato casserole, potato casserole

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Recipe Rating

53 Responses
  1. Crockpot Smoked Sausage & Hash Brown Casserole | Lauren's Latest

    […] https://laurenslatest.com/creamy-cheesy-bacon-potato-casserole-aka-funeral-potatoes/ […]

  2. Funeral Potatoes Recipe | Lauren's Latest

    […] 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. […]

  3. Funeral Potatoes | Lauren's Latest

    […] 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. […]

  4. Theresia

    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.

  5. Hope Heinks

    5 stars
    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!!! 🙂

  6. Laurie

    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.

  7. Clyde Johnson

    Why in the world would you waste that great bacon grease, in favor of sauteeing the onions in butter?!?

    Otherwise, this is right on.

  8. melody

    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!

  9. James

    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 🙂

  10. Rosemary Maple Mustard Pork Roast | Lauren's Latest

    […] no one will complain about. It’s just a lovely roasted and flavored piece of meat, especially with these. Or this. Orrrrrr this. […]

  11. Jessica

    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?

  12. Baking Serendipity

    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!

  13. Julia {The Roasted Root}

    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!

  14. Ellen @ The Baking Bluenoser

    These look soooo creamy and delicious! Plus anything with bacon and cheese is a definite bonus in my books!

  15. Anna @ hiddenponies

    I’ve never heard the term funeral potatoes…to me, these are holiday potatoes! Although, I hope people enjoy them at my funeral too 🙂

  16. Michelle @ Brown Eyed Baker

    5 stars
    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!

  17. Julie @ Table for Two

    omgosh, i LOVE LOVE kerrygold dubliner cheese, seriously so luscious and amazing. you are too for making this drool-worthy casserole! 😉

  18. Rachel @ Baked by Rachel

    Where on earth did the name funeral potatoes come from? What an awful name for such an amazing dish! Gimme! 🙂

  19. Katie @ Blonde Ambition

    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) 😉

  20. Insurance Homer Glen

    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!

  21. Carma

    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!

  22. Cat Davis - Food Family Finds

    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.