Here’s how to make scalloped potatoes with a Southwestern twist—green chiles—in under an hour.

I love taking a classic recipe and tinkering with it. Sometimes to make it easier, always to make it better, and more than likely to add a little Southwestern flair. And that usually includes adding New Mexico Hatch Chile Peppers or some New Mexico Chile Powder. And in this case, I’ve done both. But first let’s talk logistics.

How To Make This Recipe Work For You

Use a Mandolin to slice the potatoes. It’s a genius shortcut. The best way to insure that potatoes are sliced evenly, so they’ll cook evenly is to use a mandoline. My OXO Mandoline has settings for ⅛ inch and it works like a charm. And I highly recommend purchasing a cut-proof glove. Using your hand rather than the slicer device that comes with the mandolin is much more manageable. But also dangerous. These gloves keep those fingers cut-free.

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Chicken Broth

These Instant Pot Scalloped Potatoes are made with chicken broth, rather than drenched in a lot of milk or cream for the sauce. Which makes this a somewhat healthy scalloped potato recipe. The creamy sauce comes from adding ½ cup sour cream and cheese.

The Instant Pot and Cooking Starch

Using the Instant Pot to make scalloped potatoes is a breeze. There’s something about cooking any starch under pressure that results in a creamier experience. Take for instance, this recipe for Instant Pot Mac and Cheese. There’s science behind those creamy results.

With that said, let’s take a look at this recipe for Instant Pot Scalloped Potatoes.

• 3 pounds potatoes, preferably Yukon Gold.
• Chicken Broth
• Pepper Jack Cheese: I’m keeping this potato casserole on the Southwestern side and on the “creamy white” by using Pepper Jack Cheese. You can use any good melting cheese such as Monterey Jack, Muenster or even cheddar cheese.
• Onion, sweet onion please.
• Chile Peppers: Roasted and chopped Hatch Chile Peppers preferred. Choose mild or medium heat level.
• Sour Cream: Full fat please. A scalloped potato recipe is no time to worry about a few fat calories by purchasing low fat sour cream. You’ll be disappointed in the creamy texture by sacrificing fat content.
• Kosher Salt and Freshly Ground Black Pepper
• New Mexico Red Chile Powder: If you don’t have access to New Mexico Red Chile Powder, substitute Ancho chile powder. I don’t recommend using Cayenne. It’s a hotter chile powder and more suitable for Southern Dishes.

How To Make Scalloped Potatoes In The Instant Pot

1. Step 1: Select Saute and add butter to the pressure cooker pot. When butter is melted, add the onion and cook, stirring occasionally until the onion is tender, about 5 minutes.
2. Step 2: Add 1 cup chicken broth, salt and pepper to the onions.

5. Step 5: Pour the sauce over potatoes. Use a large spoon to gently turn and mix the sauce with the potatoes. Don’t stir, you’ll break the potatoes.
6. Step 6: Top with remaining shredded cheese. Cook at 350 degrees for 15 minutes or until cheese is melted and sauce is bubbly.

Tips for Success

• You will need a steamer basket insert for your Instant Pot. Simply using the trivet will make this recipe more difficult.
• Knife skills. Don’t have a mandolin? Practice, practice, practice. For this recipe to cook evenly and come out perfect, one must slice the potatoes evenly and at ⅛ inch thick. That way the potatoes will cook evenly and the recipe will work with the cook time of four minutes. If the potatoes are cut thicker, the time setting will need to be adjusted. 
• Want a little crust on top of those scalloped potatoes? Once you transfer the potatoes to a casserole serving dish, place them under the broiler for about a minute. The cheese will form a bit of a crust for additional flavor and texture.
• Sauce too thin? If for some reason the sauce is thinner than you prefer, just add in some more cheese while it’s pipping hot. The cheese will melt easy and thicken the potatoes.
• Mushy Potatoes? Perhaps the potatoes have been sliced too thin, please stick to the ⅛″ rule for this recipe.
• Not Spicy Enough? We love spice around our house, but for all my recipes, I include measurement amounts to result in a warm mildly spiced dish. You can choose a hotter chile pepper to make them spicer, or add a bit more red chile powder.

Variations and Add Ins

• Make it a meal: Add some cooked cubed ham steak or even some bacon bits. Cooked shredded or cubed chicken breast is also a good choice here.
• Vegetarian: Swap out vegetable broth for the chicken broth.

Storage

• Store these scalloped potatoes in an air tight container in the refrigerator for up to 4 days. I like to use the microwave to reheat individual servings.
• Can you freeze scalloped potatoes? You can, but the creamy sauce may separate once thawed. These potatoes are fragile, so use a spatula to turn and mix them to re-mix the sauce.

This recipe is everyone’s creamy cheesy dream. This unique recipe using a sour cream sauce is one your family will love and devour. And with Hatch chile peppers, these Instant Pot Scalloped Potatoes will warm your soul.