No one can resist thinly sliced potatoes layered with gooey cheese and juicy pieces of ham, especially not when coated in a silky, sage-infused cream sauce. The top and edges of the potatoes crisp up and turn golden once baked, while the interior of the casserole remains ultra creamy and lush!

A Simple Yet Impressive Holiday Side Dish

Pop quiz time: what’s better than fork-tender slices of potatoes swimming in a thick cream sauce, layered with chunks of ham and sharp cheddar cheese?
Nothing, you say? I couldn’t agree more.
This recipe is the ham-laden cousin of my traditional au gratin potatoes recipe. It’s an easy recipe that requires no finicky roux to thicken the cream sauce, no special ingredients, and no “cream of” canned soups.
Au gratin ham and potatoes is a rockstar side dish that disappears quickly at holiday gatherings, be it Easter, Thanksgiving, or Christmas. After all, who can turn down a side dish made with this much cream, potatoes, and cheese? No one I know.
Enjoy!


What’s in This Recipe?
The full recipe, with amounts, can be found in the recipe card below.
- Potatoes — Russet potatoes are best in this potato au gratin recipe with ham. They’re super starchy, which creates a luxurious cream sauce. However, Yukon Gold potatoes may also be used. (No need to peel them before slicing, which is a win.) Just don’t mix and match spuds since different varieties of potatoes have slightly different cook times.
- Ham — Use pre-baked ham that’s been diced into 1-inch pieces. This is a favorite side dish of mine to make with leftover glazed ham.
- Cheddar cheese — Traditional potatoes au gratin calls for Gruyere cheese, but I prefer pairing the salty ham with sharp cheddar cheese.
- Butter — Is melted and used to sauté the onions and garlic.
- Onion + garlic — Gives the ham and potatoes so much flavor.
- Chicken broth + heavy cream — The broth is spiked with heavy cream to trick your tastebuds into thinking the sauce is richer and creamier than it really is.
- Sage — Fresh is best, but you can swap it with ground sage in a pinch.
Ingredient Substitutions
- Heavy cream — Can be replaced with half and half or whole milk, noting that the ham and potatoes au gratin casserole will be less rich.
- Sage — Fresh thyme would also work.
- Cheddar cheese — Use your favorite melting cheese, from provolone to Gruyere to Colby.

How to Make Potatoes au Gratin with Ham
- Thinly slice the potatoes. Peel and slice the potatoes with a hand-held mandoline (I use the #2 setting). Do not place the sliced potatoes in water; you need all that starch to thicken the au gratin sauce.
Heidi’s Tip: No mandoline? No problem! Use a sharp chef’s knife and do your best to slice the potatoes approx. ⅛ inch thick.
- Make the au gratin sauce. Sauté the onion and garlic in melted butter, then add the heavy cream, chicken broth, fresh sage, and sliced potatoes.

Sauce not thickening? If you subbed in a low-fat alternative like 2% milk, submerged the potatoes in water after slicing, or covered the baking dish with foil, your sauce might be runny.
- Cook the potatoes. Bring the mixture to a boil, then reduce the heat to a simmer. Cook for about 15 minutes.

- Layer the casserole. Add ⅓ of the potato mixture to the bottom of a greased 8-inch square baking dish. Top with ⅓ of the cheddar and half of the diced ham. Repeat this process, then finish with a final layer of potatoes and cheese.

- Bake until golden and bubbly. You’ll want to bake the ham and potatoes au gratin uncovered so the potatoes can absorb the cream sauce and the tops can crisp up.

Make-Ahead Instructions
Just when you thought this recipe couldn’t get any better, you discover it can be fully assembled in advance and warmed back up just before serving. Now that’s my kind of side dish!
- Assemble and bake as instructed.
- Let cool to room temperature.
- Cover tightly with foil and refrigerate for up to 3 days or freeze for up to 1 month.
- Reheat in a 350ºF oven, covered, until warm and bubbly. (20 minutes if refrigerated, 90 minutes to 2 hours if frozen.)
If you make this recipe, please let me know! Leave a ⭐️⭐️⭐️⭐️⭐️ rating below, leave a comment to tell us what you think, and tag me on Instagram @foodiecrush.

Ham and Potatoes au Gratin Recipe
Ingredients
- 2 tablespoons butter
- 1 medium yellow onion, diced
- 3 cloves garlic
- 1 ½ cups chicken broth
- ½ cup heavy cream
- 5 fresh sage leaves, chopped, or I teaspoon dried sage
- ¾ teaspoon kosher salt
- ½ teaspoon freshly ground black pepper
- 4 pounds Russet potatoes, peeled and thinly sliced about ⅛-inch thick
- 1 pound baked ham, cut into slices ½-inch dice
- ½ pound sharp cheddar cheese, shredded
Instructions
- Preheat the oven to 350°F. Butter an 8 X8 or 9 X 6-inch baking dish ( 1 ½ quarts).
- Sauté the onion and garlic. In a Dutch oven, melt the butter over medium and add the onions and garlic. Season with salt and pepper and cook, stirring often, until onion softens and garlic is fragrant, 3 to 5 minutes.
- Simmer the sauce. Add the cream, chicken broth, sage, and sliced potatoes. Bring to a boil, reduce heat to medium-low, and simmer, uncovered for about 15 minutes.
- Layer in a baking dish. Arrange one-third of the potatoes in a layer on the bottom of the prepared dish. Top with half of the diced ham and one-third of the shredded cheese. Repeat the layers of potatoes, diced ham, and shredded cheese. Top with the remaining potatoes and the rest of the cheese.
- Bake until bubbling. Bake, uncovered until the potatoes are tender when pierced with a fork, the top is golden-brown, and the cream is bubbling around the edges, about 45-50 minutes. If the cheese gets too browned, tent with a piece of foil. Remove from the oven and let stand for 10 minutes before serving.
Notes
Nutrition
What to Serve With Ham and Potatoes Au Gratin
- Holiday proteins — herb butter rotisserie turkey, juicy turkey breast, lemon and garlic roast chicken
- Holiday sides — green bean casserole, cornbread dressing, sweet potato casserole
- Salads — Waldorf salad, arugula and apple salad, parmesan kale salad
- Breads and rolls — best ever dinner rolls, skillet cornbread
More Holiday Potato Side Dishes
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Daisy L.
This recipe for Ham & Potatoes au Gratin on FoodieCrush is an absolute gem for comfort food lovers. The step – by – step guide is incredibly detailed, making it accessible even for novice cooks. Starting with the use of russet potatoes, which are ideal for this dish as they hold their shape well when cooked, to the combination of ham, onions, and a rich cheese sauce, it’s a flavor – packed delight.
The addition of seasonings like thyme, garlic powder, and nutmeg gives the dish a warm and inviting aroma. The process of layering the potatoes, ham, and cheese in a baking dish and then baking it to a golden, bubbly perfection is both simple to follow and rewarding.
The recipe also offers some flexibility, such as the option to use different types of cheese based on personal preference. This versatility allows home cooks to make the dish their own. Overall, this Ham & Potatoes au Gratin recipe is not only delicious but also a great addition to anyone’s recipe collection, promising a satisfying and homely dining experience.
Glad you enjoyed it Daisy, thx for the comment.