If you are searching for a comforting side dish that brings bold flavor and creamy texture to your table, this Pepper Jack Potato Casserole Recipe is an absolute must-try. Imagine tender, thinly sliced potatoes layered in a luscious, cheesy sauce made with spicy pepper jack cheese, perfectly balanced with smoky paprika and a golden Parmesan crust. It is cozy, rich, and has just the right amount of kick to keep everyone coming back for more. Whether for a holiday feast or a weekday dinner, this casserole will quickly become a staple in your recipe collection.

Ingredients You’ll Need
The beauty of this Pepper Jack Potato Casserole Recipe lies in its simplicity—each ingredient plays an essential role in creating that creamy, flavorful experience. From the buttery onions that start the sauce to the spicy cheese that melts into every bite, these components come together to deliver comforting textures and vibrant tastes.
- 2 pounds Yukon gold or russet potatoes: These provide the perfect tender base that holds the sauce well while baking evenly.
- 2 tablespoons unsalted butter: Adds richness and helps soften the onions for a flavorful start.
- 1 small onion, finely chopped: Builds a savory foundation with sweetness and depth.
- 2 cloves garlic, minced: Lends a warm, aromatic note that enhances the overall flavor.
- 2 tablespoons all-purpose flour: Thickens the sauce to wrap perfectly around the potatoes.
- 1 ½ cups whole milk: Creates a creamy, smooth texture in the sauce.
- 1 cup heavy cream: Boosts richness and gives the casserole a luxurious mouthfeel.
- 1 teaspoon salt: Balances the flavors throughout the dish.
- ½ teaspoon black pepper: Adds subtle spice to complement the pepper jack cheese.
- ½ teaspoon smoked paprika: Brings a smoky warmth that enhances the cheesy layers.
- 2 cups shredded pepper jack cheese, divided: The star ingredient—melts beautifully with just enough spice to excite your taste buds.
- ½ cup grated Parmesan cheese: Tops the casserole with a golden, crispy finish.
- 2 tablespoons chopped fresh parsley for garnish: Adds a fresh color contrast and bright herbaceous note.
How to Make Pepper Jack Potato Casserole Recipe
Step 1: Prepare the Baking Dish and Preheat Oven
Start by preheating your oven to 375°F (190°C). Meanwhile, grease a 9×13-inch baking dish generously with butter or non-stick spray to prevent sticking and help the edges of your casserole crisp up delightfully as it bakes.
Step 2: Sauté Aromatics and Create the Roux
In a medium saucepan, melt your butter over medium heat. Add the finely chopped onion and cook it gently for about 3 to 4 minutes until it becomes soft and translucent, which infuses the base of your sauce with sweetness. Stir in the minced garlic and let it cook just 30 seconds longer—a quick step that builds layers of warm, inviting flavor.
Step 3: Make the Creamy Cheese Sauce
Sprinkle the flour over the softened onions and garlic, whisking steadily for 1 to 2 minutes to cook out the raw taste and form a roux. Slowly pour in the whole milk and heavy cream while whisking continuously; this prevents lumps and helps the sauce thicken smoothly. Simmer for about five minutes until the sauce coats the back of your spoon. Season with salt, black pepper, and smoked paprika to enhance the flavor complexity. Off the heat, stir in 1 ½ cups of shredded pepper jack cheese until melted and silky smooth, creating the rich, spicy sauce that defines this casserole.
Step 4: Layer Potatoes and Sauce
Arrange half of your thinly sliced potatoes in the bottom of your prepared baking dish, overlapping them slightly for even cooking. Pour half of the luscious cheese sauce evenly over this layer. Repeat with the remaining potatoes and pour the rest of the sauce on top. The layering ensures every bite is loaded with potatoes and that spicy, creamy goodness.
Step 5: Add Cheese Topping and Bake
Sprinkle the final ½ cup of pepper jack cheese and all the grated Parmesan over the top, which will create a golden, bubbling crust. Cover the dish loosely with foil to keep moisture in and bake for 40 minutes. Then, remove the foil and bake uncovered for another 20 to 25 minutes until the topping is perfectly golden and the potatoes are tender when pierced.
Step 6: Garnish and Serve
Finish your Pepper Jack Potato Casserole Recipe by sprinkling chopped fresh parsley over the top. This adds a vibrant, fresh touch that brightens every rich, cheesy forkful.
How to Serve Pepper Jack Potato Casserole Recipe

Garnishes
Simple fresh parsley is a classic, but feel free to get creative—sprinkle chopped green onions, a handful of crispy bacon bits, or even a dollop of sour cream to add cool creaminess that pairs wonderfully with the spicy cheese.
Side Dishes
This casserole makes a great side to grilled or roasted proteins like chicken, pork, or steak. For a balanced meal, serve alongside a fresh green salad or steamed seasonal vegetables that cut through the richness with their crispness and brightness.
Creative Ways to Present
For a fun twist, try serving individual portions in ramekins or mini casserole dishes; this makes for a charming presentation at dinner parties or holiday gatherings. Adding a sprinkle of crushed tortilla chips or chili flakes on top can also give it an exciting textural contrast and a little extra kick.
Make Ahead and Storage
Storing Leftovers
You can refrigerate any leftover Pepper Jack Potato Casserole in an airtight container for up to 3 days. The flavors deepen as it sits, making it just as delicious the next day. Simply reheat until warmed through.
Freezing
This recipe freezes beautifully if you want to prepare it in advance. Assemble the casserole but do not bake, cover tightly with foil, and freeze for up to 2 months. When ready, thaw overnight in the fridge and bake as directed, adding a little extra baking time to compensate for the cold.
Reheating
Reheat your casserole gently in the oven at 350°F (175°C) covered with foil to keep moist, about 20-25 minutes, or until heated through. Alternatively, microwave individual portions for a quick lunch or dinner fix, though oven reheating preserves the creamy texture best.
FAQs
Can I use a different type of cheese instead of pepper jack?
Absolutely! While pepper jack cheese is key for its spicy kick, you can substitute with Monterey Jack for a milder flavor or even a sharp cheddar for a rich, tangy bite. Just adjust the seasoning if you want to replicate that heat.
Do I have to peel the potatoes?
Peeling is recommended for this casserole to achieve the creamiest texture and smooth layering, but if you prefer a rustic feel and extra fiber, you can leave the skins on—just make sure to wash the potatoes thoroughly.
Can this recipe be made dairy-free?
To make a dairy-free version, substitute the butter with a plant-based alternative, use unsweetened almond or oat milk instead of whole milk, and find a dairy-free cheese that melts well, such as a vegan pepper jack-style cheese.
Is it necessary to slice the potatoes thinly?
Yes, thin slices ensure the potatoes cook evenly and soften nicely in the cheese sauce during baking. Aim for slices about 1/8 inch thick for the best results.
Can I add meat to the Pepper Jack Potato Casserole Recipe?
Definitely! Adding cooked crumbled bacon, diced ham, or even shredded chicken between potato layers can add heartiness and extra flavor that pairs beautifully with the spicy cheese sauce.
Final Thoughts
This Pepper Jack Potato Casserole Recipe is a celebration of comfort food with a playful, spicy twist. It’s a dish that welcomes everyone to the table with warmth and bold flavor, perfect for family dinners or special occasions alike. I encourage you to try it soon—you might just find your new go-to side dish that brings irresistible creamy, cheesy joy with every bite.
Print
Pepper Jack Potato Casserole Recipe
- Prep Time: 20 minutes
- Cook Time: 1 hour 5 minutes
- Total Time: 1 hour 25 minutes
- Yield: 8 servings
- Category: Side Dish
- Method: Baking
- Cuisine: American
- Diet: Vegetarian
Description
A creamy and spicy Pepper Jack Potato Casserole featuring tender sliced potatoes baked in a cheesy sauce made with pepper jack, Parmesan, and a hint of smoked paprika, perfect as a comforting side dish.
Ingredients
Potatoes
- 2 pounds Yukon gold or russet potatoes, peeled and sliced into thin rounds
Sauce
- 2 tablespoons unsalted butter
- 1 small onion, finely chopped
- 2 cloves garlic, minced
- 2 tablespoons all-purpose flour
- 1 ½ cups whole milk
- 1 cup heavy cream
- 1 teaspoon salt
- ½ teaspoon black pepper
- ½ teaspoon smoked paprika
- 2 cups shredded pepper jack cheese, divided
- ½ cup grated Parmesan cheese
Garnish
- 2 tablespoons chopped fresh parsley
Instructions
- Preheat and prepare dish: Preheat the oven to 375°F (190°C) and grease a 9×13-inch baking dish to prevent sticking.
- Cook aromatics: In a medium saucepan, melt butter over medium heat. Add the finely chopped onion and cook for 3 to 4 minutes until softened. Stir in the minced garlic and cook for an additional 30 seconds to release flavor.
- Make roux and sauce: Sprinkle in flour and whisk for 1 to 2 minutes to form a roux. Slowly whisk in the milk and heavy cream, cooking until the sauce thickens, about 5 minutes. Season with salt, black pepper, and smoked paprika.
- Add cheese to sauce: Remove the saucepan from heat and stir in 1 ½ cups of shredded pepper jack cheese until melted and smooth, creating a rich cheese sauce.
- Layer potatoes and sauce: Arrange half of the thinly sliced potatoes in the prepared baking dish, slightly overlapping the slices. Pour half of the cheese sauce evenly over the potatoes. Repeat layering with the remaining potatoes and cheese sauce.
- Top casserole and bake: Sprinkle the top with the remaining ½ cup shredded pepper jack cheese and ½ cup grated Parmesan cheese. Cover loosely with foil to retain moisture and bake for 40 minutes.
- Finish baking uncovered: Remove the foil and bake for an additional 20 to 25 minutes until the top is golden brown and the potatoes are tender when pierced with a fork.
- Garnish and serve: Remove from oven, sprinkle with chopped fresh parsley for a pop of color and freshness, and serve warm.
Notes
- This casserole can be made ahead; assemble it, cover, and refrigerate for up to 24 hours before baking.
- For extra heartiness, add cooked crumbled bacon or diced ham between the potato layers.
- Ensure potatoes are sliced evenly for uniform cooking.
- Use Yukon gold for a creamier texture or russet for a fluffier bite.