Want a dinner that feels like a million bucks but costs less than ten? This Loaded Bacon Scalloped Potatoes is my secret weapon. It’s the kind of dish that makes everyone think you spent all day in the kitchen. If you love this kind of hearty potato dish, you should try my easy Loaded Baked Potato Soup with chicken and bacon for another comforting meal.
You don’t need expensive ingredients to eat well. This recipe proves it. We’re taking humble potatoes and turning them into a savory casserole that’s pure comfort. It’s perfect for a family dinner or feeding a crowd on game day.

I make this all the time. It’s my go-to when the grocery budget is tight but my appetite for something delicious is huge. Let me show you how to make this budget-friendly favorite.
Recipe Overview
Here’s the quick look at what you’re making. It’s simpler than you think!
- Cuisine: American
- Category: Side Dish or Main Course
- Prep Time: 20 minutes
- Cook Time: 1 hour 15 minutes
- Total Time: 1 hour 35 minutes
- Servings: 6-8 people
Why This Recipe Saves You Money
I built this recipe to be kind to your wallet. Every choice has a cost-saving reason behind it.
Potatoes are one of the cheapest, most filling foods you can buy. They are the budget backbone of this whole dish. We use simple pantry staples like flour and milk for the sauce instead of buying pricey pre-made sauces.
You control the toppings. A little real bacon and cheese go a long way in flavor. This beats buying a pre-made frozen casserole any day. Those are often more expensive and less tasty.
My Tips for Smart Shopping on a Budget
How you shop makes all the difference. These are my tried-and-true rules.
Buy a whole block of cheese and shred it yourself. Pre-shredded bags cost more and have anti-caking powder. That powder can make your sauce grainy.
Loaded Bacon Scalloped Potatoes Recipe

The Budget-Friendly Ingredient List
Notes
Enjoy your homemade Loaded Bacon Scalloped Potatoes Recipe!
Nutrition Information
Look for “value packs” of bacon. You can cook it all at once. Then, freeze the cooked bacon bits in a bag for future recipes. This saves time and money later. They’re perfect for topping a restaurant-style Loaded Outback Potato Soup.
Choose green onions over other herbs. A bunch costs very little. You use the green tops and the white parts, so there’s almost no waste. They add a fresh punch that brightens the rich dish.
The Budget-Friendly Ingredient List
Here’s everything you need. Check your pantry first—you might already have half of this.
- 3 pounds russet or Yukon Gold potatoes (about 6-7 medium)
- 1 tablespoon butter
- 1 medium yellow onion, thinly sliced
- 3 tablespoons all-purpose flour
- 2 cups whole milk
- 1 cup chicken or vegetable broth
- 1 teaspoon garlic powder
- 1 teaspoon salt, plus more for seasoning
- 1/2 teaspoon black pepper
- 6 slices bacon, cooked crisp and crumbled
- 1 1/2 cups shredded sharp cheddar cheese, divided
- 1/2 cup sour cream (for serving)
- 3 green onions, thinly sliced (for serving)
How to Make It (Step-by-Step)
Follow these steps for a perfect, bubbly result every single time.
1. Start by heating your oven to 375°F (190°C). Grease a 9×13 inch baking dish. This gets everything ready for assembly.
2. Wash your potatoes well. You can peel them, but I often leave the skins on for extra fiber and to save time. Slice them thinly, about 1/8-inch thick. A sharp knife or mandoline works best.
3. Cook the bacon in a large skillet until crisp. Set it on paper towels to drain. Keep about 1 tablespoon of the bacon fat in the skillet. This fat is flavor gold.
4. Add the tablespoon of butter to the skillet with the bacon fat. Cook the sliced yellow onion over medium heat until soft, about 5 minutes.
5. Sprinkle the flour over the onions. Cook for 1 minute, stirring constantly. This cooks the raw flour taste out.
6. Slowly pour in the milk and broth, whisking constantly. Keep whisking until the sauce is smooth and starts to thicken. This should take 3-5 minutes.
7. Take the skillet off the heat. Stir in the garlic powder, salt, pepper, and 1 cup of the shredded cheddar cheese. Mix until the cheese is melted and the sauce is smooth.
8. Arrange half of the potato slices in the bottom of your greased dish. Pour half of the cheese sauce over them. Repeat with the remaining potatoes and sauce.
9. Cover the dish tightly with foil. Bake for 45 minutes. Then, remove the foil and sprinkle the remaining 1/2 cup of cheese and the crumbled bacon on top.
10. Bake uncovered for another 20-30 minutes. The top should be golden brown and the potatoes should be tender when pierced with a fork.
11. Let the casserole sit for 10 minutes before serving. This helps the sauce set so it’s not too runny. Top each serving with a dollop of sour cream and a sprinkle of green onions.
How to Use Up Every Last Bit (No Waste!)
Being resourceful is key to saving money. Don’t throw anything away.
Got leftover cooked bacon bits? Let them cool completely. Then, store them in a freezer bag. You can sprinkle them on salads, eggs, or baked potatoes for weeks.
Use the green onion tops and the white bottoms. If you have extra, chop them and freeze them on a tray. Once frozen, bag them. They are great for soups and stir-fries.
Leftover sour cream can be used in so many ways. Mix it into scrambled eggs for creaminess. Or, thin it with a little milk for a quick salad dressing. You can also bake with it.
Nutrition Notes
This is a hearty dish. Here’s a basic look at what you’re getting per serving.
- Calories: ~380
- Protein: 15g
- Carbohydrates: 35g
- Fat: 20g
- Fiber: 3g
Remember, this is a comforting casserole. Pair it with a simple green salad to round out the meal. That adds freshness and nutrients without much cost.

Common Questions About This Recipe
I get asked these questions a lot. Here are my practical answers.
Can I make this ahead of time?
Absolutely. Assemble the whole casserole up to the baking step. Cover it tightly and refrigerate for up to 24 hours. When you’re ready, bake it straight from the fridge. You might need to add 10-15 extra minutes to the baking time since it will be cold.
What’s the best potato to use?
Russet potatoes are classic. They hold their shape and soak up the sauce beautifully. Yukon Golds are my other favorite. They have a naturally buttery flavor and creamier texture. Use what’s on sale or what you have.
My sauce seems thin. What did I do wrong?
Don’t worry. The sauce will thicken as it bakes with the potatoes. The resting time after baking is also crucial. It allows the starches from the potatoes to work their magic and thicken everything up. If it’s still too thin, you can mix a little cornstarch with water and stir it in next time before baking.
This loaded potato casserole is proof that budget cooking doesn’t mean boring cooking. It’s rich, satisfying, and always a hit. I love how it turns simple ingredients into something special. For a super easy, hands-off version of a similar flavor profile, my Loaded Slow Cooker Potato Soup with Bacon is another fantastic option.
It’s a recipe that gives you confidence in the kitchen. You learn to make a from-scratch sauce and layer flavors. These skills save you money on processed foods forever.
Give it a try this week. I think it will become a regular on your table, just like it is on mine. Let me know your own money-saving tips for this recipe in the comments below! Please leave a rating!




