Grandma Grace’s Casserole–tender cubed potatoes are layered with a creamy homemade cheese sauce and topped with buttery Ritz crackers for the ultimate comfort food side dish.


Grandma Grace’s Casserole
Today’s recipe is adapted from Grandma Grace’s Cheesy Potatoes on The Kitchn. The author states, “Of all of Grace’s recipes, my personal favorite was the Cheesy Potato casserole. Growing up in the Midwest, I’d had plenty of creamy, cheesy potato casseroles, but this one was different. The cheese sauce was a bit more refined. The potatoes were cut into large pieces so they kept some of their texture. And there was the familiar and always delicious Ritz-cracker topping. Everyone knew to get a scoop of the potatoes on their first time through the buffet line because they wouldn’t last long. The potatoes showed up at pretty much every holiday, but I always associated them with Easter, maybe because they’re so good paired with ham.” I served these to Skyler’s cross country friends and they at them until they were gone. They’re definitely comfort food to the max!
Ingredients/Substitution Ideas
- Russet potatoes–or Yukon gold potatoes
- Butter
- Flour
- Half and half–or whole milk
- Kosher salt–or table salt (use a little less)
- Sharp cheddar cheese–or white cheddar
- Ritz crackers
- Parmesan cheese–or Romano cheese
Steps
Heat oven to 350° F. Pour 1 ½ cups water into bottom of Instant Pot. Add potatoes into a steamer basket and drop the basket into the Instant Pot. Cover Instant Pot and secure the lid. Make sure valve is set to sealing. Set manual/pressure cook button to 3 minutes. When time is up move valve to venting and remove the lid.


Set steamer basket aside and dump the water out of the pot.
Turn Instant Pot to sauté setting. Add in the butter and let it melt. Sprinkle the flour into the butter and whisk for about 1 minute. Stir until mixture is a light tan color.


Slowly whisk in the half and half. Stir in the salt. Cook, whisking until the mixture thickens. Turn off Instant Pot and then stir in 1 ¼ cups of the cheddar (about 5 oz) until it is melted. Move pot off of burner if needed so the cheese sauce doesn’t burn.


Spread ¼ cup of the cheese sauce into the bottom of a 9×9 inch baking dish. Add in half of the potatoes. Spread half of the remaining cheese sauce over the potatoes. Sprinkle half of the remaining cheddar on top. Then repeat the layers (rest of the potatoes, cheese sauce and cheddar).


Crush the Ritz crackers and stir together with parmesan cheese. Spoon the mixture over the top of the casserole.

Bake with foil for 30 minutes. Remove the foil and bake for 20 more minutes.

Serve and enjoy!

Notes/Tips
- This makes a great side dish to grilled chicken or pork chops. Serve with some greens like salad or broccoli.
- Use freshly shredded cheese. Pre-shredded cheese doesn’t melt as smoothly because of added anti-caking agents.
- You can mix in cooked bacon, diced ham or even some sautéed onions for extra flavor.
- I used my 6 quart Instant Pot* and my silicone steamer basket* to cook the potatoes. You can also cook the potatoes on the stove. Boil the potatoes until they are barely tender.
- Store leftovers in an airtight container* in the refrigerator for up to 4 days.
- Other recipes you can make with Ritz are Instant Pot Ritz Chicken and Air Fryer Heavenly Chicken.
Did you know you can filter the recipes on my website to search by meat type, IP or Crockpot, low carb, gluten free, etc.? Use the filter to find exactly what you are looking for.


Grandma Grace’s Casserole
- Yield: 8 servings 1x
Description
Tender cubed potatoes are layered with a creamy homemade cheese sauce and topped with buttery Ritz crackers for the ultimate comfort food side dish.
Ingredients
- 2 1/2 pounds Russet potatoes, peeled and cut into 1 inch cubes
- 4 Tbsp butter
- 1/4 cup flour
- 2 cups half and half or whole milk
- 1 1/2 tsp kosher salt
- 8 oz shredded sharp cheddar cheese
- 13 Ritz crackers
- 2 Tbsp shredded parmesan cheese
Instructions
- Heat oven to 350° F.
- Pour 1 ½ cups water into bottom of Instant Pot. Add potatoes into a steamer basket and drop the basket into the Instant Pot. Cover Instant Pot and secure the lid. Make sure valve is set to sealing. Set manual/pressure cook button to 3 minutes. When time is up move valve to venting and remove the lid.
- Set steamer basket aside and dump the water out of the pot.
- Turn Instant Pot to sauté setting. Add in the butter and let it melt. Sprinkle the flour into the butter and whisk for about 1 minute. Stir until mixture is a light tan color.
- Slowly whisk in the half and half. Stir in the salt. Cook, whisking until the mixture thickens. Turn off Instant Pot and then stir in 1 ¼ cups of the cheddar (about 5 oz) until it is melted. Move pot off of burner if needed so the cheese sauce doesn’t burn.
- Spread ¼ cup of the cheese sauce into the bottom of a 9×9 inch baking dish. Add in half of the potatoes. Spread half of the remaining cheese sauce over the potatoes. Sprinkle half of the remaining cheddar on top. Then repeat the layers (rest of the potatoes, cheese sauce and cheddar).
- Crush the Ritz crackers and stir together with parmesan cheese. Spoon the mixture over the top of the casserole.
- Bake with foil for 30 minutes. Remove the foil and bake for 20 more minutes.
- Serve and enjoy!
- Category: Side Dish
- Method: Instant Pot and Oven
More potato side dishes…
Instant Pot Twice Baked Potato Casserole
An easy potato casserole loaded with cream cheese, sour cream, cheddar and crispy bacon. The Instant Pot helps speed up the process!
Instant Pot Bombay Potatoes
The most delicious Indian spiced, crispy roasted potatoes. Use your Instant Pot to speed up the process!
Instant Pot Farmhouse Potatoes
A creamy mashed potato casserole with cheddar, mozzarella and bacon. This is a crowd pleaser!
*Karen Petersen is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.




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