
Wilma Schmidt, Dwaine’s mother, passed this recipe for Scalloped Potatoes with Ham on to him in her own handwriting. I’ve updated it a bit and am now passing it along to you.
Wilma lived into her 90s, and she passed along many recipes from her days as a farm wife. Raised during the Great Depression, the recipes often deal with using food on hand and/or stretching a dollar. An added bonus is that the ingredients used are simple and natural (well, except for the oleo!) I’ll be sharing them with you as I try them out.
Scalloped Potatoes with Ham – A Few Secret Ingredients from Wilma

This recipe produces an easy, creamy scalloped potato dish. She adds ham for protein, but you could skip it for a side dish. You can see she also suggests adding Worcestershire sauce, Parmesan cheese or mustard to change up the flavor. I personally like a bit more spice, so I suggest 1/8 tsp of cayenne pepper, or perhaps some sliced jalapenos! But whatever you choose, following this recipe will give you a family-size dish of creamy, cheesy potatoes, with a crunchy crust. Enjoy, and thanks Wilma!

Scalloped Potatoes with Ham – What is “Scalded Milk”?
What is “scalded milk”? Do I need it for this recipe?
Scalded milk is just milk that’s been heated to just below boiling. Back in the day, using unpasteurized milk (like milk straight from Wilma’s cow on the farm) was a problem in recipes that required thickening. An enzyme present in unpasteurized milk would prevent that. If you’re using pasteurized milk (and most people do these days), there’s no need to scald it for this recipe.
HOWEVER, in baking breads or pastries, scalding the milk performs another function, and this may not hold true. Check out the notes in my other posts on baking bread to find out why you might want to go ahead and scald your milk before using it.
Scalloped Potatoes with Ham – Questions and Answers
Do I need to use scalded milk for this recipe?
No — scalded milk was necessary in Wilma’s day because unpasteurized farm milk contained an enzyme that interfered with thickening. If you’re using regular pasteurized milk like most people today, you can skip that step and add it straight into the sauce.
Can I make this without ham for a side dish?
Yes — Wilma’s original was built around using up ham, but the creamy, cheesy potatoes stand perfectly well on their own as a side dish. Just leave the ham out and layer as directed.
Can I add extra spice to this recipe?
Definitely. I like adding 1/8 teaspoon of cayenne pepper for a little kick, but sliced jalapeños work great too. Worcestershire sauce, Parmesan, or a bit of mustard are also good ways to change up the flavor, per Wilma’s own notes.
What can I use if I don’t have leftover ham?
This recipe is a great way to use up leftover holiday ham, but if you don’t have any on hand, try my Ham and Cheese Strata for another way to stretch a ham you do have — or simply skip the meat and serve this as a side.
Why does the cheese sauce need to cook the flour first?
Cooking the flour in butter for a few minutes (until it smells nutty) removes the raw flour taste before you add the milk. Skipping this step can leave your sauce tasting pasty instead of smooth and rich.
Can this be made ahead of time?
Yes — you can assemble the layered casserole ahead, cover, and refrigerate until you’re ready to bake. You may need to add a few extra minutes to the bake time if it’s going in cold from the fridge.
Wilma’s Scalloped Potatoes with Ham
Ingredients
- 4 cups Raw Potatoes sliced
- 1/3 cup Onion minced
- 2 tbsp Flour
- 1/2 tsp Salt
- Pepper to taste
- 1/8 tsp Cayenne pepper optional
- 2 tbsp Butter
- 1 1/2 cups Milk see notes
- 1/2 cup Cheddar cheese grated
- 3/4 lb Cooked Ham
- Paprika for color
Instructions
- Peel and slice potatoes and place in boiling water for 3 to 5 minutes. Drain.
Cheese sauce
- Melt butter in skillet. Add onion and saute until translucent. Add flour, and stir until the flour is cooked and you smell a nutty aroma – about 3 minutes. Slowly add the milk, stirring until thickened. Do not boil. Gradually stir in the cheese until melted and smooth. Season with salt and pepper and other seasonings as needed.
- In a greased 2 quart casserole or 13X9″ baking dish, alternate the layers of potatoes and ham, while splashing with the cheese sauce. End with the sauce on top, and sprinkle generously with paprika.
- Bake at 350F for 1 hour.
Notes
Scalded milk is just milk that’s been heated to just below boiling. Back in the day, using unpasteurized milk (like milk straight from Wilma’s cow on the farm) was a problem in recipes that required thickening. An enzyme present in unpasteurized milk would prevent that. If you’re using pasteurized milk (and most people do these days), there’s no need to scald it for this recipe.
HOWEVER, in baking breads or pastries, scalding the milk performs another function, and this may not hold true. Check out the notes in my other posts on baking bread to find out why you might want to go ahead and scald your milk before using it.
If you don’t have potatoes and still want to use up that ham, try my Ham and Cheese Strata recipe. Just as easy to make, and will stretch that ham for another good meal.
If you have a moment, leave a note at the link above and tell me how it turned out for you.
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