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Cheesy Scalloped Potatoes with Caramelized Onions

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Cheesy Scalloped Potatoes with Caramelized Onions is a rich and comforting side dish featuring tender layers of thinly sliced potatoes, sweet caramelized onions, and a velvety cheese sauce. Baked until golden and bubbly, it’s the perfect indulgent addition to any holiday or cozy family meal.

Ingredients

  • 2 tbsp olive oil
  • 2 tbsp butter (for onions)
  • 2 large yellow onions, thinly sliced
  • 3 cloves garlic, minced
  • 3 tbsp butter (for sauce)
  • 3 tbsp all-purpose flour
  • 2 cups heavy cream or whole milk
  • 1 1/2 cups shredded cheddar cheese
  • 1 cup shredded Gruyère cheese (or Swiss cheese)
  • 2 1/2 lbs Yukon gold or russet potatoes, peeled and thinly sliced
  • 1 tsp salt
  • 1/2 tsp black pepper
  • 1 tsp fresh thyme or rosemary (optional)

Instructions

  1. Preheat oven to 375°F (190°C) and grease a baking dish.
  2. Heat olive oil and 2 tbsp butter in a skillet over medium-low heat. Add sliced onions and cook for 25-30 minutes, stirring occasionally, until golden and caramelized. Add garlic in the last 2 minutes of cooking.
  3. Meanwhile, peel and thinly slice the potatoes using a mandoline or sharp knife.
  4. In a saucepan, melt 3 tbsp butter over medium heat. Stir in the flour and cook for 1-2 minutes to form a roux. Gradually whisk in cream or milk and cook until thickened, about 5-7 minutes.
  5. Reduce heat and stir in cheddar and Gruyère cheese until melted and smooth. Season with salt, pepper, and thyme or rosemary if using.
  6. Layer half of the sliced potatoes in the prepared baking dish. Top with half of the caramelized onions and half of the cheese sauce.
  7. Repeat with remaining potatoes, onions, and cheese sauce.
  8. Cover with foil and bake for 40 minutes. Remove foil and bake an additional 20-25 minutes until bubbly and golden on top.
  9. Let rest for 10 minutes before serving to allow the sauce to set.

Notes

Use a mandoline for evenly sliced potatoes.Whole milk can be used instead of cream for a lighter version.Add cayenne pepper or jalapeños for a spicy twist.Try smoked gouda, mozzarella, or other cheeses for variation.Use gluten-free flour or cornstarch to make it gluten-free.

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