

Want a dinner that feels like a restaurant-worthy splurge but costs less than a fast-food run? I live for these moments. This Loaded Bacon Scalloped Potatoes is my go-to secret weapon for feeding a crowd or just treating my family without the guilt. If you love this kind of hearty, loaded comfort food, you should also try my easy Loaded Baked Potato Soup with Chicken & Bacon.
You don’t need expensive ingredients to eat well. This dish proves it. It takes humble potatoes and turns them into a creamy, savory casserole that’s packed with flavor. It’s the ultimate comfort food that looks and tastes like you spent all day in the kitchen.
Think of your favorite loaded potato. Now imagine that in a warm, shareable dish perfect for any night of the week. That’s what we’re making today. It’s smart, satisfying cooking that respects your budget.
Recipe Overview
Here’s the quick look at what you’re making. It’s straightforward and designed for real life, not a fancy cooking show.
- 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
Let’s talk about the real magic: the price tag. This recipe is a masterclass in budget cooking because of a few smart choices.
Potatoes are one of the most affordable, filling staples you can buy. The creamy sauce is made from scratch with basic pantry items, skipping the pricey pre-shredded cheese bags. Buying block cheese and grating it yourself saves money and melts better.
We use a strategic amount of bacon for maximum flavor impact. You can even use bacon ends or pieces, which are often cheaper. Sour cream and green onions add that final flavor punch without breaking the bank.
My Tips for Smart Shopping on a Budget
I’ve learned a few tricks over the years to keep my grocery bill low. These tips make a huge difference over time.
Buy russet potatoes in big bags. The per-pound cost is always lower. Look for green onions in the produce section, not pre-chopped in jars. One bunch costs pennies per serving.
Loaded Bacon Scalloped Potatoes Recipe

The Budget-Friendly Ingredient List
How to Make It (Step-by-Step)
Notes
Enjoy your homemade Loaded Bacon Scalloped Potatoes Recipe!
Nutrition Information
For the cheese, choose a basic sharp cheddar block. Grate it at home. The anti-caking powder on pre-shredded cheese can make sauces grainy. For bacon, check for store-brand options or larger value packs. You can freeze what you don’t use.
The Budget-Friendly Ingredient List
Here’s everything you need. I bet you have half of it already. See? Simple.
- 3 pounds russet potatoes (about 6 medium)
- 1 (8 oz) block sharp cheddar cheese
- 1/2 pound bacon (about 8 slices)
- 1 bunch green onions
- 1 cup sour cream
- 3 tablespoons all-purpose flour
- 3 tablespoons butter
- 2 1/2 cups milk (whole or 2% works best)
- 2 cloves garlic, minced
- 1 teaspoon salt, plus more for seasoning
- 1/2 teaspoon black pepper
How to Make It (Step-by-Step)
Don’t let the layers scare you. This is an easy process. Just follow these steps for a perfect result every time.
- Start by preheating your oven to 375°F (190°C). Grease a 9×13 inch baking dish.
- Cook the bacon in a large skillet until crispy. Transfer it to a paper towel-lined plate. Once cool, chop it into bits. Keep about 2 tablespoons of the bacon fat in the skillet.
- Thinly slice your potatoes. You can use a knife or a mandoline for even slices. No need to peel them! The skins add texture and save time.
- Make the sauce. Melt the butter in the skillet with the bacon fat over medium heat. Add the minced garlic and cook for 1 minute until fragrant.
- Whisk in the flour and cook for another minute. This is your roux, the thickener for the sauce.
- Slowly pour in the milk, whisking constantly to avoid lumps. Let it simmer and thicken for 3-5 minutes. It should coat the back of a spoon.
- Turn off the heat. Stir in 1 1/2 cups of the grated cheddar cheese until melted and smooth. Then, stir in the sour cream, salt, and pepper.
- Assemble the casserole. Place a single layer of potato slices in the baking dish. Spoon a portion of the cheese sauce over them. Repeat, layering potatoes and sauce, until everything is used.
- Sprinkle the remaining 1/2 cup of cheese on top. Cover the dish tightly with foil.
- Bake covered for 45 minutes. Then, remove the foil and bake for another 25-30 minutes. The top should be golden and the potatoes tender when pierced with a fork.
- Let it rest for 10 minutes after baking. This is the key step for the sauce to set. Then, top with the chopped bacon bits and sliced green onions before serving.
How to Use Up Every Last Bit (No Waste!)
Wasting food is like throwing cash in the trash. Here’s how to make the most of every ingredient you bought.
Use the leftover bacon fat! Store it in a jar in the fridge. A spoonful adds incredible flavor to scrambled eggs or roasted vegetables. If you have extra green onions, chop them and freeze them in a bag for future recipes. This same no-waste philosophy is perfect for my restaurant-style Loaded Outback Chicken Bacon Potato Soup.
Leftover sour cream can be used in dips, on tacos, or to make a quick ranch dressing. Got extra potatoes? They’re perfect for breakfast hash or homemade fries later in the week.
Nutrition Notes
This is a hearty, indulgent dish. Here’s a basic look at what you’re getting per serving to help you plan your meal.
- Calories: ~450
- Protein: 18g
- Carbohydrates: 35g
- Fat: 27g
- Fiber: 3g
Common Questions About This Recipe
I get asked these questions a lot. Here are my tried-and-true answers to help you out.
Can I make this ahead of time?
Absolutely. Assemble the whole casserole, cover it, and refrigerate for up to 24 hours before baking. You may need to add 5-10 minutes to the baking time since it will be cold from the fridge.
What can I use instead of sour cream?
Plain Greek yogurt is a great, high-protein swap. It will give you a similar tangy flavor. You can also use more milk and a squeeze of lemon juice in a pinch.
My sauce seems thin. What did I do wrong?
Don’t worry. The sauce thickens a lot as it bakes and then rests. That 10-minute rest after baking is non-negotiable for the perfect creamy texture. Trust the process.
This loaded potato casserole is proof that you can create something truly special on a budget. It’s all about choosing the right ingredients and using them wisely. The result is a crowd-pleasing dish that feels like a treat. For another fantastic twist on the loaded potato theme, be sure to check out my spicy Loaded Cheesy Bacon Cajun Potato Soup.
I hope this recipe becomes a regular in your rotation. It’s saved me on more than one busy weeknight. Let me know your own money-saving twists for this recipe in the comments below! Please leave a rating!


