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How To Make The Best Cheese Potato Casserole

Published: February 28, 2019 • 
Last Modified: March 18, 2024
Published: March 18, 2024

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Bring Back An Old-School Steakhouse Classic

Oh my goodness, I will tell you a story about a cheese potato casserole like the one served at an old-school steakhouse in the heart of Nebraska beef country—who could do it better?

This casserole is a big-time favorite in our family. Let's face it—we all just love potatoes. We call them "Dreisbach's," after the steakhouse in Grand Island, Nebraska, that made them famous.

There are many variations, all knock-offs of the original served at the swanky Dreisbach's Steakhouse. It was an iconic establishment, called by some the best steakhouse in the world.

In 1988, Pat Dowd was named restaurateur of the year in the Taste of Nebraska Awards. Their steaks were legendary, and the potatoes were divine!

Originally, old-school steakhouses were near meat-packing plants, and the clientele was mostly men. Over the years, they became popular places for families to gather and socialize. Steakhouses became "the place" for dinner as more people could afford fine dining.

How To Make The Best Cheese Potato Casserole

After over 50 years of marriage to Papa (the world's biggest fan of potatoes,) I thought I knew everything there was to know about spuds. Russet potatoes are my favorite all-purpose potatoes and are ideal for this dish.

This type of potato is sometimes called a "floury" potato. Still, "floury" was a relatively new potato terminology for me. I like to use Russet potatoes in this recipe because they are "floury" potatoes.

Floury potatoes are low in water content, and most of their sugar has been converted to starch by harvest time. This quality leads to a dry, fluffy texture that lends itself well to roasting and happily absorbs all the wonderful ingredients that make these potatoes special.

Floury potatoes are great at soaking up flavors like sour cream and butter. Russets are the number one choice for baked potatoes.

Cook the potatoes "in the jacket," which means you don't peel them first. This cooking method optimizes the flavor of the potatoes.

Cook until the potatoes can easily be pierced with the tip of a knife, about 20 minutes, depending on their size. Let them cool until you can handle them, then peel them.

Grate The Potatoes Into A Greased Casserole Dish

grated potatoes

I recommend grating cheese from a block instead of bagged pre-shredded cheese. Bagged cheese shreds have a coating that keeps the shreds from sticking to each other and keeps the cheese from melting smoothly.

Now add all the other ingredients to the potatoes and stir them up.

The Cheese Potato Casserole Is Ready To Bake

If you've been reading my posts for a while, you know I cannot resist garnishes! Things just look much more appetizing when you add a garnish! A dash of paprika and a sprinkle of parsley are just the perfect touch for this casserole!

Now, you can stop and put it in the fridge and bake it in a day or two—nice to make ahead! Or go ahead and bake it right this minute!

The tips of the grated potatoes will brown and get ever-so-slightly crispy. The inside of the casserole is full of creamy, cheesy goodness. Oh my gosh, this is making my mouth water!

It's the perfect accompaniment to steak, of course, but it's also a fantastic side dish with any kind of meat! Even finicky cottage cheese haters love it! I'll bet it becomes a family favorite at your house, too. (PS. I did put some shortcuts in the recipe if you need a faster workaround!)


Yield: 12 servings

Cheese Potato Casserole

Cheese potato casserole

This is a cheesy potato casserole like the one served in a swanky old-school Nebraska steakhouse. Cottage cheese, sour cream, and cheese make it a delicious, creamy side dish for any meat. This recipe is the real McCoy! You want to hang on to this one! It’s a hearty, super-tasty crowd-pleaser!

Prep Time 20 minutes
Cook Time 35 minutes
Total Time 55 minutes


  • Six medium Russet potatoes are cooked in the jacket, then cooled until they can be handled
  • 1 1/2 cup small curd full-fat creamed cottage cheese .
  • 1 1/2 cup sour cream
  • 1 cup shredded sharp cheddar cheese
  • 2 Tbsp instant minced onion
  • 1 tsp garlic powder or more to taste
  • 1 Tbsp dried parsley
  • Salt to taste; use your favorite seasoned salt if you like. We love Lawry's seasoned salt
  • 1 tsp pepper or seasoned pepper to taste. We love Lawry's seasoned pepper


  1. Boil the potatoes in their skins until you can easily pierce them with the tip of a knife or a skewer.
  2. Drain water and cool the potatoes until you can handle them.
  3. Peel and grate the potatoes into a greased baking dish.
  4. A 13" by 9" size will work well.
  5. Add other ingredients and stir to combine. If desired, sprinkle with additional parsley and paprika for color.
  6. Bake for 30-40 minutes at 350 degrees until lightly browned.


  1. You CAN use 2 pounds of frozen hashbrowns for this casserole and bagged shredded cheese if you are short on time. It is SO much better with real Russet potatoes because they absorb all the flavors so beautifully.
  2. I always recommend grating cheese from a block instead of shredded cheese from a bag for the creamiest results. This casserole can be made ahead and baked a day or two later. You will need to increase the baking time if you take it straight from the fridge.

We do enjoy our potatoes at GB's house. Here are a couple more recipes using our beloved spuds. Perfect Crispy Oven Roasted Potatoes and Easy Ham And Scalloped Potatoes.

If you enjoyed this recipe today, please share it on your social media accounts, such as Facebook, Instagram, Twitter, and Pinterest. I'd be tickled and ever so grateful; thank you! 

If you haven't already, check out my Facebook page, where I'll be posting easy, delicious, and family-friendly recipes every week.

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20 comments on “How To Make The Best Cheese Potato Casserole”

  1. For the Classic Steakhouse Cheesy Potato Casserole, it says to cook the potatoes in the jacket. It looks like they are in a pot in the picture - so did you boil them (how long did that take) or did you cook them in the oven like a baked potato? And are they peeled when you shred them or are the skins part of the dish?

    1. Boiled in water, peeled, grated. Cook time depends on size of potato. About 20 minutes until they can be pierced with a skewer or tip of a knife. Holler if you need more help!

  2. […] Cheesy Potato Casserole, A Steakhouse Classic […]

    1. I have reheated them in the oven or in the microwave. I stir everything up well and if they seem dry I add a splash of milk- cover lightly with foil. Microwave works too you just lose a little crispiness!!

    2. I have a beautiful granddaughter named Julia. From the day she was born I call her my Juliebeans so I noticed and love your email!!

  3. I've eaten these potatoes at Dreisbach's and loved them. I had the recipe but lost it. So glad to find it again.
    Thank you.

    1. No, everything is cooked, so it only takes enough oven time to warm the casserole through and let the top brown a little! Enjoy!

  4. Help! I just mixed up these potatoes for a dinner tonight. I think maybe I had too many potatoes since the consistency seems rather dry. Compared to a cheesey potato casserole.
    Is this how they should luck or do I need to add a little more sour cream or milk? Looking forward to hearing from you. Thank you lboles97@gmail.com

  5. Does this cheesy steakhouse casserole turn out as good with other types of potatoes? I have red and golden on hand and really wanted to make them for supper. I just found your site this afternoon. I have been printing recipes like crazy!

  6. I have the same question as Donna. I have red potatoes on hand and wonder if they would work in your recipe. Thanks and looking forward to your response

    1. Sorry for the delay1 Red potatoes will certainly work and taste good. You will find they do not absorb as much liquid as Russets so you'll have a creamier casserole, not a bad thing, is it? and I'm 100% with you using what you have and avaoiding unnecessary trips and spending!!!

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