Make your own creamy scalloped potatoes for a fraction of the price of boxed scalloped potatoes, with twice the flavor with this simple, yet dirt cheap recipe.

Once again, this is one of the recipes mentioned in our free downloadable ebook! In order to ensure that the potatoes cook evenly, we prefer to use a mandoline slicer to cut them into slices. To transform these simple scalloped potatoes into au gratin potatoes add 1 cup of shredded cheese to the sauce prior to pouring onto the potatoes.
Scalloped Potatoes
You’ll Need:
1 Large Onion, cut in rings
3 Tbs. Butter
3 Tbs. Flour
Salt & Pepper
1 cup Milk
1 cup Chicken Broth (make a little with bouillon if you don’t have stock on hand)
3-4 Medium Potatoes, washed
Preheat the oven to 350F
Cut the scrubbed potatoes into thin slices and toss ’em in a 9″x13″ pan. Place the onion (cut into rings) all over the top of potatoes, set aside.
In a saucepan over medium heat, melt butter. Add flour, stirring constantly until it becomes pasty and then forms a ball. Cook for about 1 minute, continuing to stir. Add broth and milk (together) into the flour/butter mix, whisking constantly until creamy and thick (cooking over medium heat), but do not boil.
Pour the thickened sauce over the potatoes and onions sprinkle lightly with salt and pepper, If you’d like you can sprinkle on some fresh or dried parsley for colors as well.
Place in the oven. Bake at 350º for 30-40 minutes until the potatoes are tender and the sauce is lightly browned. Garnish with freshly chopped parsley just prior to serving.
Scalloped Potato Variations:
- Add chopped up leftover meat, veggies, etc. to the sauce before pouring
- Add 1- 2 tsp of crushed red pepper seeds for a little Southwestern kick
- Pork chop scalloped potato casserole
- Add 1 cup of shredded cheese to the sauce to transform scalloped potatoes into Au Gratin potatoes! During the last 10 minutes of baking, sprinkle a bit more cheese on the top.
💸 Budget101® Price Breakdown: Homemade Scalloped Potatoes
Boxed scalloped potatoes look cheap until you compare them to this. A single box of Betty Crocker Scalloped Casserole Potatoes runs $1.68 at Walmart and feeds 4 — barely. This recipe feeds 6 to 8 for less than that, using real potatoes, real butter, and a made-from-scratch cream sauce that actually tastes like something.
| Ingredient | Walmart Item | Unit Price | Amount Used | Recipe Cost |
|---|---|---|---|---|
| Russet Potatoes (3–4 medium) | Fresh Whole Russet Potatoes, 5 lb bag | $2.47 | ~1.5 lb of 5 lb | $0.74 |
| Butter (3 Tbsp) | Great Value Sweet Cream Unsalted Butter, 1 lb (4 sticks) | $3.44 | 3 Tbsp of 32 Tbsp | $0.32 |
| All-Purpose Flour (3 Tbsp) | Great Value All-Purpose Enriched Flour, 5 lb bag | $1.97 | 3 Tbsp of ~75 Tbsp | $0.08 |
| Whole Milk (1 cup) | Great Value Whole Vitamin D Milk, 1 gallon | $2.84 | 1 cup of 16 cups | $0.18 |
| Chicken Broth (1 cup) | Great Value Chicken Bouillon Powder, 3.75 oz jar (~25 servings) | $1.88 | 1–2 tsp of jar | $0.10 |
| Yellow Onion (1 large) | Fresh Whole Yellow Onion, each | $0.70 | 1 whole onion | $0.70 |
| Salt & Pepper | Pantry staple | — | Pinch each | $0.02 |
| Total Recipe Cost | $2.14 | |||
| Cost Per Serving (serves 6) | $0.36 | |||
How That Stacks Up
Option |
Servings |
Total Cost |
Cost Per Serving |
|---|---|---|---|
This homemade recipe |
6 |
$2.14 |
$0.36 |
Betty Crocker Scalloped box (Walmart, 4 oz) |
4 |
$1.68 |
$0.42 |
Restaurant scalloped potatoes (side dish avg.) |
1 |
$5.00–$8.00 |
$5.00–$8.00 |
The boxed version isn’t even cheaper per serving once you compare serving sizes honestly. This homemade batch costs 14% less per serving than the box and feeds 50% more people, with zero dehydrated potato slices and no ingredient list that reads like a chemistry exam. At a restaurant you’d spend up to $48 for the same six servings you just made for $2.14.
Want to know exactly what each batch costs down to the penny? Here’s how to calculate the real cost of a recipe (the same method used for the price breakdown above).
🖨️ Print-Friendly Scalloped Potatoes Recipe

Old-Fashioned Scalloped Potatoes
Ingredients
- 3 to 4 medium potatoes (scrubbed and thinly sliced)
- 1 large onion (sliced into rings)
- 3 tablespoons butter
- 3 tablespoons all-purpose flour
- 1 cup milk
- 1 cup chicken broth
- ½ teaspoon salt (or to taste)
- ¼ teaspoon black pepper (or to taste)
- 1 tablespoon parsley (chopped (optional garnish))
Instructions
- Preheat oven to 350°F (175°C).
- Arrange the sliced potatoes evenly in a greased 9x13-inch baking dish. Scatter the onion rings over the potatoes.3 to 4 medium potatoes1 large onion
- In a medium saucepan over medium heat, melt the butter.3 tablespoons butter
- Stir in the flour and cook, stirring constantly, for about 1 minute until a smooth paste forms.3 tablespoons all-purpose flour
- Slowly whisk in the milk and chicken broth. Continue whisking until the sauce thickens and becomes smooth and creamy. Do not allow it to boil.1 cup milk1 cup chicken broth
- Pour the sauce evenly over the potatoes and onions.
- Season lightly with salt and pepper.½ teaspoon salt¼ teaspoon black pepper
- Bake uncovered for 30 to 40 minutes, or until the potatoes are fork-tender and the top is lightly browned.
- Garnish with fresh parsley before serving, if desired.1 tablespoon parsley
Notes
* Add 1 to 2 teaspoons crushed red pepper flakes for a Southwestern-style version.
* Top with browned pork chops before baking for a complete one-pan meal.
* For Au Gratin Potatoes, stir 1 cup shredded cheddar cheese into the sauce and sprinkle an additional 1/2 cup over the top during the last 10 minutes of baking. **Storage**
Store leftovers covered in the refrigerator for up to 4 days. Reheat in the microwave or in a 350°F oven until warmed through.
If you altered the ingedients above by doubling or tripling the recipe, you may also need to change the pan/dish size and adjust the cooking/baking time.






