Cheesy Potatoes with Bacon

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Bring bold flavor to the table with Cheesy Potatoes and Bacon! This rich, creamy casserole bakes up golden and bubbly—an irresistible side for backyard BBQs or game day feasts.

Side Dishes Make the Meal!

We decided to barbecue tonight. I made the most delicious Butter Burgers you’ve ever tasted. (The whole family took a poll and decided it would be hard to eat a butter-free burger from now on. That’s how good they are.)

We needed some sides to go with the burgers and that’s where the idea for these cheesy potatoes came from.

We happened to have a huge bag of russet potatoes on hand, as well as cream cheese, bacon, and butter. (Are you noticing a butter theme here?)

At a Glance
• Main Ingredients: Russet potatoes, cream cheese, cheddar, bacon, butter, heavy cream
• Prep + Cook Time: ~10 min prep + ~40-50 min total (including melting, combining, baking)
• Flavor Profile: Creamy, cheesy, smoky, comforting
• Best Served With: BBQ meats, grilled burgers, or as a comforting side at family dinners

A Cheesy, Delicious Potato Recipe!

We merged all of those things together into the most delicious (and simple) potato dish. It made a full 9×13-inch casserole dish, plenty for our family with a lot left over.

The good news about this dish is, the leftovers are fine in the fridge for a few days and easy to heat up in the microwave.

What are we waiting for? Let’s talk about what you’ll need to make these delicious potatoes.

Cheesy Potatoes Ingredients

You will find a full printable recipe card for this cheesy potato casserole at the bottom of this post but here’s a quick peek at what you’ll need. These are simple ingredients you might already have on hand.

• medium potatoes
• butter (salted or unsalted, your choice)
• heavy whipping cream (or milk)
• cream cheese
• shredded cheddar cheese
• bacon
• salt and pepper (to taste)

How to Make Cheesy Potatoes with Crispy Bacon

This dish comes together so easily and you don’t even have to turn on the oven. It’s a stovetop dish that you finish off in the microwave.

Cut your bacon and place it into a large skillet.

Cook bacon until done but not overly crispy. Drain on a paper towel and set aside.

Wash, peel and slice potatoes. (See photo for how I sliced mine).

Leave potato slices soaking in cool water until they’re all sliced.

Rinse and add fresh water to cover potatoes.

Add a teaspoon of salt to the water and bring to a boil. Boil the potatoes for about 10 minutes or until they’re mostly cooked (but not too soft. You still want a little bit of a “bite” to them.)

Make Your Sauce

While the potatoes are cooking, make your cheese sauce.

Cut up the cream cheese and put it in a microwave-safe bowl. (You’ll want to use a large bowl so you have plenty of room to stir.) Add a cup of heavy cream. Add half a stick of butter.

Place in microwave and heat in one-minute increments, checking it (and stirring) periodically.

When the cream cheese and butter have melted it’s time to add 4 ounces of the grated cheddar.

Heat it for about 30 second until it starts to melt. Stir well. Add more salt and pepper to taste.

Drain the potatoes and place them back in the pan.

Pour the cheese mixture over the potatoes and add the bacon.

Stir until it’s all well combined.

Transfer to a 9×13-inch pan.

Cover with the remaining cheese and place in microwave. Heat in one-minute increments (about 2 – 3 minutes total) until the cheese is melted. Cooking time may vary. This can also be heated in an oven instead of microwave.

Cover with foil until time to serve.

Serve and enjoy!

These potatoes can be stored in the refrigerator in an airtight container (or tightly covered in foil or plastic wrap). They will stay good for 3 – 4 days.

What to Expect from this Cheesy Potato Side Dish

They’re rich, they’re creamy, and they’re packed full of flavors. These are really the perfect cheesy bacon potatoes, the ultimate comfort food recipe. They’re so rich with protein that you could even serve this as your main dish.

I loved the addition of cream cheese. (We usually use Velveeta but I didn’t have any on hand, which is why I used cream cheese.)

The cream thickened and caused the cheese to cling to the potatoes in a really delicious sort of way. (If you want to thin yours down to make it more of a creamy sauce, make it with milk in place of heavy cream and even add a bit more than the recipe calls for.)

My favorite part was the little bite of bacon. (My bacon was thick and delicious.)

These potatoes were served alongside our delicious Butter Burgers and our Sweet and Savory Southwest Beans. Talk about the perfect side dish. This was a delicious meal and a simple, great recipe.

Make this Cheesy Bacon Potato Casserole Your Own

There are so many different ways you can change up this delicious side dish. Here are some fun suggestions:

Velveeta: I referred to this above. I usually use Velveeta (regular) in place of the cream cheese. Use the small box.

Sour Cream: This would be delicious stirred into the potatoes. You could even add it at the end or place a dollop on top of each serving.

Onion: You can add onion to this dish if you like. Dice half an onion and cook it with the bacon. It would be really pretty dice green onions on top as a garnish (and to add flavor).

Sausage in place of bacon: If you prefer you can use Jimmy Dean sausage.

Cheesy Bacon Ranch Potatoes: Add a cup of ranch dip to the cheesy mixture. This would add a ton of flavor and creaminess.

Add Soup! Want to make this dish even creamier? Add cream of chicken soup, or even a full can of cheddar cheese soup to the recipe.

Frequently Asked Questions

Does it matter what kind of potatoes I use?

Not really — russet, red, gold (Yukon Gold), or even frozen hash browns all work well. Russets give you a fluffier texture since they’re starchier, while red and gold potatoes hold their shape a bit better. I’ve used russets here and they’re perfect, but use whatever you have on hand.

Can I make this in a slow cooker?

Absolutely! You’ll want to boil the potatoes first to get them mostly cooked, then transfer everything to the slow cooker to finish warming through and melding the flavors. This is actually a great option for keeping it warm at a cookout or potluck — just set it on low and it’ll stay perfect for hours.

Should I cover the dish with foil while baking?

I skipped the foil because I was worried the melted cheese would stick to it when I lifted it off. If you do use foil, spray it lightly with cooking spray first. Covering with foil toward the end is a good way to keep things warm without over-browning the top.

Is this the same as a loaded baked potato casserole?

Very similar! Loaded baked potato casseroles typically use mashed or finely diced potatoes and include sour cream and green onions. This version is chunkier and creamier, with a rich cream cheese base. You could easily add sour cream and green onions to this recipe to push it more in that direction — both are delicious!

Can I cook the bacon in the oven instead of a skillet?

Yes — baking bacon on a sheet pan lined with foil at 400°F for 15–18 minutes is one of the cleanest and most hands-off methods. You get evenly cooked, flat bacon with almost no mess. I do this all the time when I’m making a big batch.

Can I use Velveeta instead of cream cheese?

Absolutely — Velveeta was actually my original go-to for this recipe! The small block (16 oz) melts beautifully and gives you that classic creamy, processed-cheese sauce texture. Cream cheese makes it a bit richer and tangier. Both are delicious — use whatever you have.

Can I make this ahead of time?

Yes! Assemble the whole dish, cover tightly, and refrigerate. When you’re ready to serve, reheat covered in a 350°F oven for 20–30 minutes until hot and bubbly, or microwave in increments. The flavors actually get even better after sitting overnight.

How do I store and reheat leftovers?

Store covered in the refrigerator for 3–4 days. Reheat individual portions in the microwave in 60-second increments, stirring between each. For the whole dish, reheat covered in the oven at 325°F for about 20 minutes. Add a splash of cream or milk if it looks like it’s drying out.

What else can I add to make this more of a full meal?

Stir in shredded rotisserie chicken, ground beef, or smoked sausage and this becomes a hearty main dish that feeds a crowd. It’s also incredible with a dollop of sour cream on top and a sprinkle of green onions before serving.

Other Side Dishes from Backyard Texas Grill

This is one of the best recipes for cheesy potatoes but if you’re in the mood for something different, we’ve got you covered for other side dishes, appetizers, and non-meat dishes. Here are some of our favorites:

Savory Southern Corn Dip: This is a personal favorite, good as an appetizer or a side dish.

Sautéed Apples: These are delicious and perfect with pork dishes like our Breakfast Fatty our St. Louis Style Ribs.

Southwest Beans: These sweet and spicy beans are perfect with (literally) any barbecued meat.

Check out this Jailhouse Rice from South Your Mouth. It would be great with these burgers.

Looking for a great dessert to eat with these delicious potatoes? Check out our Amazing Cast-Iron Dump Cake on the Grill!

Planning a holiday or backyard gathering? This dish pairs perfectly with the other favorites in our Texas comfort food roundup.

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About the Man Behind the Grill

Zach Morrow was born and raised in Texas and has always had a passion for great barbecue. 

He’s at home behind the grill and loves to feed his friends and family home-cooked favorites as often as he can. 

Zach especially loves trying new things and is excited to share his knowledge for Backyard Texas Grill.