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These Caramelized Onion Scalloped Potatoes are beyond indulgent and the perfect addition to your holiday dinner or anytime you’re hosting a nice dinner! They are insanely creamy, herby, and sure to be enjoyed by all who are around your table.

I do think the photos speak for themselves, but just to give you an idea of the deliciousness of these scalloped potatoes, I start with caramelizing the onions — I promise it’s worth the time — the create a delicious sauce with garlic, white wine, heavy cream and butter…YUM.
The potatoes are layered with this sauce and gruyere cheese resulting in bubbly, deliciousness. Pair these Caramelized Onion Scalloped Potatoes with my Herb-Crusted Beef Tenderloin and you’re on your way to a delicious meal that is sure to impress.
Ingredients:

- Olive Oil
- Yellow Onions
- Salt
- Russet Potatoes
- Garlic
- Unsalted Butter
- White Wine
- Heavy Whipping Cream
- Fresh Thyme Leaves
- White Pepper
- Garlic Powder
- Cayenne Pepper
- Gruyere Cheese
If you are looking for a dairy-free scalloped potato recipe, try my Whole30 Scalloped Potatoes!
Step-by-Step:
step one: caramelize the onions
To start this recipe, caramelize the onions in a large skillet. This takes about 30 minutes, but I promise it is worth it! Allowing the onions to slowly cook in oil and salt brings so much flavor to the sauce you will make for the potatoes.

Step two: prep the potatoes
While the onions are caramelizing, thinly slice the potatoes. Once thinly sliced, add to a large bowl and fill the bowl with water. This prevents the potatoes from browning!

Step Three: make the sauce
Once the onions are caramelized, drain off any excess oil if needed. Next, add the garlic and butter to the skillet with the onions. After the garlic has sauteed for a minute, add the white wine and cook until it has reduced by half. Next, stir in the heavy cream, thyme, and other seasonings. Stir to combine then simmer until the sauce begins to thicken. Once thickened, remove from heat while you begin layering the potatoes.

step 4: assemble the scalloped potatoes
Once the sauce is ready, assemble the scalloped potatoes. Start the layering by adding ½ of the potatoes to the bottom of the greased baking dish. Top this layer with 1/3 of the sauce then add 1/4 cup of cheese. Repeat with a layer of the remaining potatoes, followed by the remaining sauce. Do not add an additional cheese layer yet! Cover with foil and bake until potatoes are tender, about 40 minutes.



Step five: Finish the potatoes
Once the potatoes are tender, carefully remove them from the oven. Carefully remove the foil then top with the remaining cheese. Increase the heat to 425℉ then place the potatoes back into the oven and bake until the cheese is bubbly and lightly browned. Let cool slightly then serve!
Recipe FAQs:
Yes! The caramelized onions are the base of the sauce and the overall flavor of the dish. It is important to really let them cook until they become a deep brown color.
While you can cut these with a knife, I prefer using a mandolin to get evenly sliced thinned potatoes. No matter the method you use, be very careful!
I have not tried to make these dairy-free. I’d reccomend my Whole30 Scalloped Potatoes instead.
These are best made same day or you can bake these them let it cool completely, cover and refrigerate. Then, the day of serving you just need to reheat it in the oven at 350℉ or 375℉, covered, until nice and hot. You can caramelize the onions ahead of time though! Make the day ahead then store, covered, in the fridge.

I hope you enjoy these Caramelized Onion Scalloped Potatoes as much as my family and friends do!

Caramelized Onion Scalloped Potatoes
Ingredients
- ¼ cup olive oil
- 2 medium yellow onions halved and thinly sliced
- 2 tsp Kosher salt
- 3 lb russet potatoes
- 2 cloves garlic minced
- 2 tbsp unsalted butter
- ½ cup white wine
- 1 pint heavy whipping cream about 2 cups
- 1 tbsp finely chopped thyme leaves
- ½ tsp white pepper
- ½ tsp garlic powder
- ¼ tsp cayenne pepper optional
- 3/4 cup shredded gruyere cheese
Instructions
- In a large skillet over medium heat, add the olive oil, onions and 1 tsp of salt. Stir to combine. Let the onions caramelize for 35-40 minutes, stirring often so that they brown but being careful not to burn.
- While the onions are caramelizing, peel your potatoes and slice them into 1/4-inch rounds. I prefer to use a mandolin to ensure they are a uniform ¼ inch thickness, but if you do not have one, you can cut them carefully with a sharp knife in as even slices as you can get!
- Add the sliced potatoes to a large bowl and fill with water until they are just covered, set aside (this helps prevent them from browning while you finish your onions).
- Preheat your oven to 375℉ and grease a 9×13 baking dish.
- Once the onions are caramelized, drain off any excess oil then place back over medium heat.
- While the oven preheats, add the garlic and butter to the skillet with the onions. Melt the butter and sauté the garlic for about a minute.
- Add the white wine to the skillet and let it cook until it has reduced by half, about 2 minutes. Once reduced, add the heavy cream and whisk to combine and bring to a simmer. Stir in the thyme, white pepper, garlic powder, cayenne (if using) and the remaining 1 tsp of salt. Stir to combine and cook, simmering and stirring often, to allow the flavors to mend and the sauce to slightly thicken, 4 more minutes. Remove from heat and set aside while you begin to layer your potatoes.
- Drain the potatoes then add ½ of the potatoes to the bottom of the greased 9 x 13 pan in an even layer. Pour ⅓ of the sauce over the first layer of the potatoes (about 1 cup) then add ¼ cup of the cheese. Next, add the remaining potatoes then pour the remaining sauce over (do not add the remaining cheese yet!)
- Cover with foil and transfer to the preheated oven and bake until the potatoes are just fork-tender, about 40 minutes.
- Once tender, carefully remove the potatoes from the oven and increase your heat to 425℉.
- Remove the foil and top the potatoes with the remaining ½ cup of cheese. Place back into the oven and cook, uncovered, for 8 to 10 minutes, or until the cheese is bubbly and lightly browned over the top.
- Let cool for 5 to 10 minutes before serving! Enjoy!
Notes
Nutrition information is automatically calculated, so should only be used as an approximation.
I agree with others who said they had to increase cooking time to get the right ‘done-ness’ on the potatoes. Regardless, the finished product is so crave-able; it’s perfect for the holidays
This recipe is amazing and was relatively simple! I halved the recipe and cooked it in a 9×9 baking dish. I also used dried thyme instead of fresh (I did about 3/4 tsp). My husband and I both LOVED and it will definitely be making it in the future for the holidays.
I don’t like scalloped potatoes and I love this recipe, comes together so well and is delicious! The cooking time though seems to be off I agree more like 75-90 minutes..
Delicious!! Will now be a staple dish for our Christmas dinner – was a big hit this year!
Yay! Thank you for sharing