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The Best Creamy Scalloped Potatoes and Ham Casserole (From Leftover Ham)

A close-up, appetizing slice of scalloped potatoes and ham with a golden, bubbly cheese crust on a white plate.

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A simple, baked casserole featuring thinly sliced potatoes baked in a rich, homemade cheese sauce with chunks of savory ham. This recipe is perfect for using up holiday leftovers.

Ingredients

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  • 3 lbs Russet potatoes, peeled and thinly sliced (about 1/8 inch thick)
  • 2 cups cooked ham, diced
  • 1/2 cup unsalted butter
  • 1/2 cup all-purpose flour
  • 4 cups whole milk, warmed
  • 1 teaspoon salt
  • 1/2 teaspoon black pepper
  • 1/4 teaspoon nutmeg
  • 2 cups shredded sharp cheddar cheese
  • 1 cup shredded Monterey Jack cheese

Instructions

  1. Preheat your oven to 375 degrees F (190 degrees C). Grease a 9×13 inch baking dish.
  2. Prepare the cheese sauce: In a large saucepan, melt the butter over medium heat. Whisk in the flour and cook for one minute, stirring constantly to form a roux.
  3. Gradually whisk in the warm milk until the mixture is smooth. Continue cooking, stirring often, until the sauce thickens enough to coat the back of a spoon, about 5 to 7 minutes.
  4. Remove the sauce from the heat. Stir in the salt, pepper, and nutmeg. Add the cheddar cheese and Monterey Jack cheese, stirring until the cheese is completely melted and the sauce is smooth.
  5. In the prepared baking dish, layer half of the sliced potatoes. Sprinkle half of the diced ham evenly over the potatoes. Pour half of the cheese sauce over the layers.
  6. Repeat the layering process with the remaining potatoes, ham, and top with the remaining cheese sauce.
  7. Cover the baking dish tightly with aluminum foil. Bake for 45 minutes.
  8. Remove the foil and bake uncovered for an additional 20 to 30 minutes, or until the potatoes are tender when pierced with a fork and the top is golden brown and bubbly.
  9. Let the casserole rest for 10 minutes before serving.

Notes

  • For a slow cooker variation, layer the potatoes, ham, and sauce in a greased slow cooker. Cook on low for 6 to 8 hours or on high for 3 to 4 hours until potatoes are tender. Do not cover the slow cooker with foil; use the standard lid.
  • Slice potatoes uniformly thin for even cooking; a mandoline slicer works best for this.
  • If you do not have leftover ham, you can use fresh ham steak, cooked and diced, or substitute with smoked sausage.

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