
This Twice Baked Potato Casserole transforms the beloved steakhouse side dish into a crowd pleasing comfort food masterpiece that feeds twelve hungry people. Every spoonful delivers the perfect harmony of fluffy potatoes, tangy sour cream, smoky bacon, and melted cheese that makes this dish absolutely irresistible for family gatherings and potluck dinners.
I discovered this recipe during a particularly hectic Thanksgiving when I needed to serve potato sides for twenty people but didn't have time to stuff individual potato skins. This casserole saved the day and has become my go to potato dish whenever I need to feed a crowd. My family actually prefers it to traditional twice baked potatoes because every bite has the perfect ratio of creamy filling to crispy cheese topping.
Ingredients
- 1 pound bacon divided use for mixing and topping: Creates the essential smoky flavor that makes this dish special
- 5 pounds peeled russet potatoes cut into 1 inch pieces: Russets have the perfect starch content for fluffy creamy texture
- 8 ounces cream cheese softened to room temperature: The secret to ultra creamy consistency without lumps
- 1 cup sour cream: Adds tangy richness that balances the heavy cream cheese
- 1/3 cup milk: Helps achieve the perfect creamy consistency without making it too thick
- 1 teaspoon garlic powder: Provides savory depth without overpowering the potato flavor
- 1 teaspoon kosher salt: Essential for bringing out all the flavors
- 1/2 teaspoon onion powder: Adds subtle sweetness and complexity
- 1/2 teaspoon black pepper: Gives just a hint of warmth
- 3 cups freshly shredded cheddar cheese divided: Sharp cheddar works best for maximum flavor impact
- 3 sliced green onions divided: Fresh bite that cuts through the richness
Step by Step Instructions
- Cook the Bacon Foundation:
- Cook the entire pound of bacon in a large skillet over medium heat until deeply golden and crispy, about 12 to 15 minutes. Transfer to paper towels and let cool completely before crumbling. This smoky bacon will be divided between the casserole filling and the final garnish, so make sure it gets properly crispy since soggy bacon will ruin the texture.
- Prepare the Potato Base:
- Place the diced russet potatoes in a large stockpot and cover with cold water by about 2 inches. Starting with cold water ensures even cooking throughout each piece. Bring to a rolling boil over high heat, then reduce to medium low and cook for 15 to 20 minutes until fork tender but still holding their shape. Overcooked potatoes will turn mushy and ruin the casserole texture.
- Drain and Rest the Potatoes:
- Drain the potatoes thoroughly in a large colander, then return them to the hot pot off the heat. Let them sit uncovered for 5 minutes to allow excess moisture to evaporate. This step prevents a watery casserole and ensures the creamy mixture will coat the potatoes properly rather than pooling at the bottom.
- Create the Creamy Base:
- In a medium bowl, whip the softened cream cheese with an electric mixer until completely smooth and fluffy, about 2 minutes. Add the sour cream and whip again until perfectly combined. Slowly stir in the milk until the mixture is creamy and pourable. Room temperature cream cheese is crucial here because cold cream cheese will create lumps that won't disappear.
- Build the Flavor Profile:
- Stir three quarters of the crumbled bacon, two sliced green onions, 1 1/2 cups of the shredded cheddar, garlic powder, salt, onion powder, and black pepper into the cream cheese mixture. This creates a flavor packed base that will coat every potato piece with deliciousness.
- Combine and Assemble:
- Preheat your oven to 375°F and spray a 9x13 inch baking dish with cooking spray. Add the creamy mixture to the pot with the rested potatoes and fold together very gently to avoid breaking up the potato pieces. Transfer to the prepared baking dish and top with the remaining 1 1/2 cups of shredded cheese.
- Bake to Golden Perfection:
- Bake uncovered for 25 to 30 minutes until the casserole is bubbly around the edges and the cheese topping has turned golden brown. The internal temperature should reach 165°F. Top with the remaining crumbled bacon and sliced green onion immediately before serving while the cheese is still melted.

The secret ingredient that makes this casserole extraordinary is letting the cooked potatoes rest in the hot pot after draining. I learned this technique from my grandmother who made the fluffiest mashed potatoes, and it works perfectly here too. The residual heat evaporates excess moisture while keeping the potatoes warm enough to melt the cream cheese mixture smoothly. This one step prevents the soggy, watery casserole that ruins so many potato dishes.
Make Ahead Magic
This casserole is perfect for busy schedules because you can assemble it completely up to 24 hours before baking. Simply cover tightly with plastic wrap and refrigerate until ready to bake. Add an extra 5 to 10 minutes to the baking time if starting from cold. You can even freeze the unbaked casserole for up to one month, though I recommend adding the cheese topping after thawing for the best texture.
Smart Substitutions
Yukon Gold potatoes work beautifully in place of russets if you prefer a slightly creamier, less fluffy texture. For cheese variations, try sharp white cheddar, pepper jack for heat, or even Swiss for a more sophisticated flavor profile. Turkey bacon can replace regular bacon for a lighter option, though you'll lose some of the essential smoky richness that makes this dish special.
Perfect Pairings
This rich, indulgent casserole pairs beautifully with simple grilled or roasted meats like steak, chicken, or pork chops. The creamy, cheesy flavors complement barbecue perfectly, making it ideal for summer cookouts and family reunions. For vegetables, serve alongside something bright and acidic like a simple green salad or roasted Brussels sprouts to cut through the richness.

Leftover Transformation
Store leftovers covered in the refrigerator for up to 5 days, and don't worry about them getting boring. Cold casserole makes an incredible breakfast when reheated and topped with a fried egg. You can also form leftover portions into patties, coat with breadcrumbs, and pan fry them into crispy potato cakes that taste like gourmet hash browns.
Recipe FAQs
- → Can I make this casserole ahead of time?
Yes, you can assemble the entire casserole up to 24 hours before baking. Cover tightly with plastic wrap and refrigerate until ready to bake. Add an extra 5-10 minutes to the baking time if starting from cold.
- → What type of potatoes work best for this casserole?
Russet potatoes are ideal because of their high starch content, which creates the fluffiest texture. Yukon Gold potatoes can be substituted for a slightly creamier, less fluffy result.
- → How do I store and reheat leftovers?
Store leftovers covered in the refrigerator for up to 5 days. Reheat in the microwave or in a covered dish in the oven until warmed through. The casserole can also be frozen for up to 3 months.
- → Can I substitute different cheeses in this casserole?
Absolutely! Sharp cheddar provides the best flavor, but pepper jack adds heat, white cheddar offers a milder taste, and Swiss cheese creates a more sophisticated flavor profile.
- → What's the secret to preventing watery casserole?
After draining the cooked potatoes, return them to the hot pot and let them sit for 5 minutes. This allows excess moisture to evaporate, preventing a watery finished dish.
- → How many people does this casserole serve?
This casserole generously serves 12 people as a side dish. Each serving provides approximately 532 calories with a satisfying combination of carbohydrates, protein, and healthy fats.