At dinners and parties throughout the Midwest, Scalloped Potatoes are always the first thing to disappear. This recipe uses a quick, made-from-scratch cheese sauce that's layered with plenty of potatoes.
Preheat oven to 350 degrees. Coat a 9-inch by 13-inch baking dish with nonstick spray.
In a small saucepan over medium-high heat, melt butter until foaming. Whisk in flour until cooked through, about 1 minute. Whisk in milk until smooth. Bring sauce to a boil, reduce heat, and cook until thickened, about 2 to 3 minutes longer.
Stir in 1 cup cheese and season to taste with salt, pepper, and cayenne if using (I like 1 teaspoon salt , 1/2 teaspoon pepper, and 1/2 teaspoon of cayenne, see note 2). It's okay if the sauce tastes just a little salty because it will be flavoring 3 pounds of potatoes. You should have about 3 cups of cheese sauce.
Drain the potatoes well in a colander and blot dry with a clean kitchen towel. Layer half the sliced potatoes in bottom of prepared baking dish. Top with half the cheese sauce (about 1 1/2 cups). Layer the second half of potatoes and top with remaining cheese sauce.
Sprinkle the remaining 1 cup cheese over the top. Bake uncovered until heated through and the cheese is melted and browned, about 1 hour. Garnish with fresh chives or paprika and let stand 10 minutes before serving.
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Notes
Cayenne pepper: This adds a a subtle heat and flavor to the sauce and I highly encourage you to add it. Anything more than 1/4 tsp. might be too spicy for kids in my opinion. I used 1/2 tsp. and loved it.
Potatoes: Starchy russets are the best potatoes for scalloped potatoes. I like to use a mandoline slicer for easy uniform slices, but a sharp knife works fine too. Aim for 1/8-inch slices (not too thick, not too thin). Store the potatoes in water up to 24 hours in advance to prevent oxidation (and to get ahead on prep).
Yield: This recipe makes about 12 servings of Scalloped Potatoes, 1/2 c. per serving. Your exact number of servings depends on how you slice it up.
Storage: Store leftovers covered in the refrigerator for up to 4 days.