Make The Best Cheesy Potato Casserole From Scratch

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A Beloved Old-School Steakhouse Classic

This cheesy potato casserole is FIRE—and I ought to know because I’ve been making it for decades! It takes a little more effort than opening a bag of frozen hash browns, but honest-to-goodness potatoes make the flavor and texture miles better.

You will love this old recipe! This one's honestly worth the effort of cooking actual potatoes in the jacket (meaning with the skins on), then cooling, peeling, and shredding them.

Yep, it sounds like work, but some things are worth the time, and this is one. You simply cannot replicate the flavor of real honest-to-goodness potatoes made this way. The texture and flavor are miles better than recipes using frozen hash browns.

If, in a pinch, you need to use the frozen ones, this is still a pretty darn good recipe, but I hope you'll try the old-school method at least once. After all, it made an iconic Nebraska steakhouse a legend. Nebraskans know beef, but we also know potatoes.

If you grew up in Nebraska, chances are you’ve heard whispers about the famous cheesy potato casserole served at Dreisbach’s Steakhouse — an old-school spot in Grand Island that many called the best steakhouse in the world.

Dreisbach’s Steakhouse was beloved and earned a lot of recognition, like the 1988 Taste of Nebraska Restaurateur of the Year, presented to Pat Dowd. While the steaks drew crowds, the potatoes kept folks coming back for more.

This recipe is a close cousin of the original, reminiscent of the one served at that old-school steakhouse in the heart of Nebraska's beef country. Their creamy, cheesy potatoes were legendary. Our family still just calls them “Dreisbach’s.” They’re rich, comforting, and pure Midwest nostalgia — a perfect side dish for holidays, Sunday dinners, or any time you’re craving vintage steakhouse vibes. (and they reheat beautifully!)

What Kind Of Potato Makes The Best Cheese Potato Casserole

After more than 55 years of marriage to Papa — the world’s biggest potato fan — I figured I knew everything there was to know about spuds. Turns out, you can teach an old dog new tricks… or at least new potato terminology.

For this casserole, I swear by good old Russets. Food folks call them “floury” potatoes, which basically means they’re low in water, high in starch, and bake up fluffy as a cloud. Even better? They soak up every drop of butter, sour cream, and cheesy goodness you throw at them.

In other words: Russet potatoes are perfect for baked potatoes — and perfect for this vintage steakhouse casserole.

How To Make Cheesy Potato Casserole

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

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

You may be wondering, "Can't I just grab a bag of frozen hash browns instead?" Sure, I've been in your stocking feet; I get it. Life’s busy, and sometimes dinner needs to get on the table ASAP!

But if you want that classic steakhouse flavor, take a few extra minutes to cook and grate real potatoes. There’s just something about spuds cooked in their skins. They are extra flavorful, and the texture is amazing. They taste like Sunday dinner and a little extra love.

Next, grate some cheddar cheese. I will forever recommend grating cheese from a block instead of bagged pre-shredded cheese. Bagged cheese shreds have a coating that prevents them from sticking together, but it prevents the cheese from melting as smoothly.

Now add the other ingredients to the potatoes and stir. Just look at all those rich, delicious components!

The Cheesy 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 prettier and 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, 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 (like Papa) 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!)

Sadly, Dreisbach's closed several years ago, but here's the good news! The wonderful steakhouse was beloved for more than meat and potatoes! You can still buy Dreisbach’s famous salad dressings — here’s where to find them.

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Yield: 12 servings

Cheesy Potato Casserole

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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

Ingredients

• Six medium Russet potatoes are cooked in the jacket, then cooled until they can be handled
• 1 1/2 cups 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

Instructions

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- a 13" by 9" size will work well.
4. Add other ingredients and stir to combine. If desired, sprinkle with additional parsley and paprika for color.
5. Bake for 30-40 minutes at 350 degrees until lightly browned.

Notes

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.

Cheesy Potato Casserole FAQs

Can I make cheesy potato casserole ahead of time?

Yes! Assemble the casserole, cover it tightly, and refrigerate it for up to 24 hours before baking. Let it sit at room temperature while the oven heats, then bake as directed. It may need a few extra minutes if it is still quite cold.

Can I freeze cheesy potato casserole?

Freezing is not recommended. Sour cream and cheese can separate or become grainy after freezing and thawing, and the potatoes may lose their lovely texture.

How should I store leftovers?

Cover the casserole tightly or transfer the leftovers to an airtight container. Refrigerate them promptly and enjoy them within three to four days.

What is the best way to reheat cheesy potato casserole?

Reheat it gently in a low oven, covered, until warmed through. You can also reheat individual servings in the microwave on reduced power so the cheese and sour cream sauce don't overheat or separate.

Can I use frozen hash browns instead of fresh potatoes?

Yes, in a pinch! Thaw them first, then drain off any excess moisture. The casserole will still be tasty, but freshly cooked and shredded potatoes give it the best flavor and texture.

Why do you cook the potatoes in their jackets?

Cooking the potatoes with their skins on helps keep them from absorbing too much water. Once they are cool enough to handle, peel and shred them for wonderfully fluffy potatoes that hold up beautifully in the casserole.

We sure do enjoy our potatoes at GB's house. Here are a couple more recipes using our beloved spuds. (Papa's motto: I never met a potato I didn't like.)

Perfectly Crispy Oven-Roasted Potatoes - The oven-roasted way to make perfect crispy-skinned baked potatoes with a fluffy, cloud-like interior.

Easy Ham and Scalloped Potatoes - This recipe makes it easy to make scalloped potatoes and ham in a smaller batch and just one skillet to wash! It's quick and delicious.

Hasselbach Potatoes - An impressive-looking potato dish that's deceivingly easy to make! The skin is crispy and golden brown, the inside is deliciously soft and creamy.

Wonderful Danish Caramelized Potatoes - This recipe is for Danish brown potatoes, a traditional Christmas Eve dinner accompaniment. They go especially well with roast pork or duck and red cabbage!

If you enjoyed a post, I'd love it if you would leave a ⭐⭐⭐⭐⭐ review or a comment. It really helps my little business reach people like us who enjoy really good homemade food, even when it takes a little extra time. ❤❤

Love, GB (Betty Streff)

Real food. Real kitchen. Real easy.

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