Preheat oven to 350 F. Grease a 1 ½ quart casserole dish; set aside.
In a medium saucepan over medium-low heat, melt butter.
Stir in flour, and cook for 1 minute.
Add milk, and whisk to combine.
Stir in mustard, salt, pepper, and thyme.
Cook until milk thickens, stirring occasionally. It will be the consistency of a cream soup.
Reduce heat to low, and stir in cheese.
Place half of the sliced potatoes in prepared casserole dish.
Pour 2/3 cup of cheese sauce over potatoes.
Repeat layer with remaining potatoes.
Dot cream cheese over potatoes.
Cover cream cheese and potatoes with remaining cheese sauce.
Cover and bake for about 60 minutes.
Video
[adthrive-in-post-video-player video-id="UR58oyUR" upload-date="2021-04-01T18:14:28.000Z" name="Cream Cheese Scalloped Potatoes" description="Cream Cheese Scalloped Potatoes are an easy, cheesy potato recipe! Perfect for holidays and weeknights – these scalloped potatoes make a great side dish!" player-type="default" override-embed="default"]
Notes
Butter: I use salted butter in this recipe.
Milk: You can use any milk, from skim to whole milk, in this recipe. Whole milk will make for a richer dish.
Mustard: The dry mustard adds some extra flavor to the sauce. You can reduce or omit the mustard if you prefer.
Thyme: The thyme can be omitted if you prefer.
Cheddar cheese: I like to use sharp cheddar, but you could use white cheddar or another type of shredded cheese instead of the sharp cheddar.
Cream cheese: You can use regular or reduced-fat cream cheese. I don't recommend using fat-free cream cheese.