Cheesy Potato Casserole with Caramelized Onions, Gruyere, Bacon, and Crispy Onions

One of my daughter’s favorite comfort foods is a cheesy potato casserole that I normally serve with steak. When making dinner recently, I decided to kick it up a notch with Gruyère, crispy onions, bacon crumbles, and caramelized onions in this batch of cheesy potatoes. Oh my! I had to control myself because I seriously could have had thirds–yes, I had seconds. They are SO good. We all loved these potatoes, including my daughter’s friend who was over for dinner. The baking dish was empty in no time, and I can’t wait to make another batch soon. This cheesy potato casserole recipe paired nicely with slow-roasted beef and garlic butter roasted asparagus.
Cheesy Potato Casserole with Caramelized Onions, Gruyère, Bacon, and Crispy Onions
Ingredients:
- 2 large russet potatoes, peeled
- 4 pieces of bacon, diced
- ½ cup yellow onion, diced
- 2 cloves garlic, minced
- 2 tbsp butter
- 2 tbsp flour
- ⅓ cup chicken broth
- ⅓ cup whole milk
- ½ cup sour cream
- 1 cup Gruyère cheese, shredded
- 1 tbsp fresh parsley, chopped
- Sea salt and freshly cracked pepper, to taste
- 1½ cups crispy fried onions, or more to taste
How to Make Cheesy Potato Casserole with Caramelized Onions, Gruyère, Bacon, and Crispy Onions:
Peel the russet potatoes. Slice them into planks, then strips, and dice them into bite-sized cubes.
Place the cubed potatoes in a large pot of well-salted water, bring to a boil, and cook for 8 minutes. Remove, drain in a colander, then set aside to let them cool.
Preheat the oven to 350 degrees. Coat a 9-inch baking dish with butter or cooking spray.
Cook the bacon crumbles in a large skillet over medium-high heat until golden brown. Remove from pan and place on a paper towel to drain.
Remove all but 1 tablespoon of bacon grease from the skillet, then add the diced onions. Cook, stirring often, for 20-25 minutes, adding a little water if the onions get dry, until caramelized.
Add the minced garlic and cook, stirring constantly, for 1 minute. Remove from skillet and set aside.
Heat the butter in the skillet over medium heat. Sprinkle in the flour and stir, cooking for 2-3 minutes.
Very slowly, pour in the broth and the milk, while whisking. Continue to stir until thickened, about 4-5 minutes. Season with sea salt and freshly cracked pepper, to taste. Remove from the heat.
Pour the cooked and drained potatoes into a large mixing bowl. Add the thickened gravy along with the sour cream, Gruyère cheese, bacon bits, caramelized onions, and parsley. Stir until well combined. Taste and re-season with sea salt and freshly cracked pepper, if needed.
Pour into the prepared baking dish, then cover with a lid or foil.

Place in the oven and bake for 45 minutes.
Remove the foil and continue cooking for 10 minutes or until the potatoes are tender, golden, and bubbly.
Sprinkle the crispy onions on top and continue to bake for 5 minutes, or until lightly golden.
Remove from the oven and let cool for about 10 minutes before serving. Enjoy.

Equipment
- 9-inch Baking Dish
Ingredients
- 2 large russet potatoes peeled
- 4 pieces of bacon diced
- ½ cup yellow onion diced
- 2 cloves garlic minced
- 2 tbsp butter
- 2 tbsp flour
- ⅓ cup chicken broth
- ⅓ cup whole milk
- ½ cup sour cream
- 1 cup Gruyère cheese shredded
- 1 tbsp. Fresh parsley chopped
- Sea salt and freshly cracked pepper to taste
- 1½ cups Crispy fried onions or more to taste
Instructions
- Peel the russet potatoes. Slice them into planks, then strips, and dice them into bite-sized cubes.
- Preheat the oven to 350 degrees. Coat a 9 x 9 baking dish with butter or cooking spray.
- Cook the bacon crumbles in a large skillet over medium-high heat until golden brown. Remove from the skillet and place on a paper towel to drain.
- Remove all but 1 tablespoon of bacon grease from the skillet, then add the diced onions. Cook, stirring often, for 20-25 minutes, adding a little water if the onions get dry, until caramelized.
- Add the minced garlic and cook, stirring constantly, for 1 minute. Remove from the skillet and set aside.
- Heat the butter in the skillet over medium heat. Sprinkle in the flour and stir, cooking for 2-3 minutes.
- Very slowly, pour in the broth and the milk while whisking. Continue to stir until thickened, about 4-5 minutes. Season with sea salt and freshly cracked pepper, to taste. Remove from the heat.
- Pour the cooked and drained potatoes into a large mixing bowl. Add the thickened gravy along with the sour cream, Gruyère cheese, bacon bits, caramelized onions, and parsley. Stir until well combined. Taste and re-season with sea salt and freshly cracked pepper, if needed.
- Pour into the prepared baking dish, then cover with a lid or foil.
- Place in the oven and bake for 45 minutes.
- Remove the foil and continue cooking for 10 minutes or until the potatoes are tender, golden, and bubbly.
- Sprinkle the crispy onions on top and continue to bake for 5 minutes, or until lightly golden.
- Remove from the oven and let cool for about 10 minutes before serving. Enjoy.




Looks so yummy with cheese and caramelized onions!
I’d say those potatoes are definitely kicked more than one notch. Yum.
Great recipe Pam. Looks delicious.
Mmmm my kind of dish, sounds delicious, saved and will probably be on the menu tomorrow. Thanks for sharing, Diane
hard to kick something that’s already so awesome up a notch, but you did!!