Dairy Free Scalloped Potatoes with Crispy Shallots

I always wanted a scalloped potato recipe that I could serve without worrying about dairy. It took a few tries, but this one finally hit the mark.

The sauce is smooth and creamy, and the potatoes come out soft all the way through. Nobody at the table would guess there is no milk or cheese in it.

Since the whole thing is dairy free, it works for people who avoid dairy for any reason. That is a big deal when you want a side dish that everyone can share without a second thought.

The crispy shallots are my favorite part. You cook them slowly in olive oil until they turn golden and crunchy, then scatter them over the top right before serving.

It is a warm, filling side that goes with almost anything. Give it a try and see how easy dairy free comfort food can be.

Why This Recipe Is a Keeper

Rich and Creamy – Oat milk and nutritional yeast create a smooth, savory sauce without any dairy.

Perfect Texture – Thin Yukon Gold slices become tender and creamy while still holding their shape beautifully.

Golden Crispy Topping – Crisp shallots add a delicious contrast to the soft potatoes and silky sauce.

Deep Savory Flavor – Garlic, onion, Dijon, thyme, and nutmeg make every layer taste warm and satisfying.

Here’s What You’ll Need

For the Potatoes

• 3 lb Yukon Gold Potatoes, sliced 1/8 inch thick
• 1/4 cup Dairy Free Butter
• 1 small Yellow Onion, finely diced
• 5 cloves Garlic, minced
• 1/4 cup All Purpose Flour
• 3 cups Unsweetened Oat Milk
• 1/3 cup Nutritional Yeast
• 1 tsp Dijon Mustard
• 2 tsp Salt
• 3/4 tsp Black Pepper
• 1/4 tsp Ground Nutmeg
• 1 tsp Fresh Thyme Leaves

For the Crispy Shallots

• 3 large Shallots, thinly sliced
• 1/3 cup Olive Oil
• 1/4 tsp Salt

How to Make It

Step 1

Heat the oven to 375F and grease a 9×13 inch baking dish. Slice the potatoes thin and even, then keep them in a bowl of cold water so they do not brown.

Step 2

Melt the dairy free butter in a saucepan over medium heat and cook the onion for 5 minutes. Add the garlic and cook 1 minute, then whisk in the flour and stir for 2 minutes until it smells toasty.

Step 3

Pour in the oat milk in a slow stream while whisking constantly. Simmer for 4 to 5 minutes until the sauce thickens to the texture of pourable gravy.

Step 4

Whisk in the nutritional yeast, dijon, salt, pepper, nutmeg, and thyme. Taste and make it slightly saltier than you think it needs, since the potatoes will absorb a lot.

Step 5

Drain and pat the potato slices dry, then layer half of them in the dish. Pour over half the sauce, add the rest of the potatoes, and cover with the remaining sauce, pressing everything down evenly.

Step 6

Cover tightly with foil and bake for 45 minutes, then uncover and bake 30 minutes more until the top is golden and a fork slides through with no resistance.

Step 7

While it bakes, cook the sliced shallots in the olive oil in a small skillet over medium low heat, stirring often, for 12 to 15 minutes until golden and crisp. Drain on paper towels and sprinkle with salt.

Step 8

Let the potatoes rest for 15 minutes, then shower the crispy shallots over the top just before serving so they stay crunchy.

Recipe Tips

Keep the Potato Slices Even

You will get the best results when every potato slice is close to 1/8 inch thick. A mandoline slicer makes this much easier and helps all 3 pounds of potatoes cook at the same rate.

Thicker slices can stay firm after the thinner ones are already tender. If a few slices are noticeably thicker, set them aside for another meal instead of adding them to the dish.

Dry the Potatoes Thoroughly

After draining the potatoes, spread them over clean kitchen towels and remove as much water as possible. Water left between the slices can thin the sauce and keep it from becoming rich and creamy.

I recommend drying the potatoes right before you assemble the dish. This keeps them fresh in the cold water while also limiting extra moisture in the baking dish.

Choose the Right Oat Milk

Use plain, unsweetened oat milk with no vanilla or other added flavors. A full-bodied oat milk works best because very thin varieties can make the sauce feel watery.

Let the oat milk lose some of its refrigerator chill before adding it. Pour it into the flour mixture gradually while whisking so the sauce stays smooth and does not form floury lumps.

What to Make Next

• Dairy Free Apple Cider Donut Ice Cream
• Dairy Free Coconut Vanilla Creme Brulee
• Dairy Free Espresso Tiramisu
• Dairy Free Molten Chocolate Lava Cakes
• Dairy Free Salted Caramel Chocolate Tart

Popular Questions

Can I use a different dairy free milk instead of oat milk?

Yes. Unsweetened soy milk or unsweetened cashew milk work well because they are creamy and mild.

Avoid sweetened or flavored dairy free milks, since they can change the savory flavor of the sauce. Coconut milk can work, but it may add a noticeable coconut taste.