Funeral Potatoes Recipe With Cream Of Mushroom Soup: Cheesy Mushroom Clouds Over Crispy Top

This funeral potatoes recipe transforms simple ingredients into a crispy, cheesy masterpiece that always steals the show. 🌟 The secret lies in layering cream of mushroom soup with melted cheese and potatoes, then baking until golden perfection—just like Nana Mae used to make in her Peachtree Street diner.

My first time attempting this, I burned the top trying to rush it, but now I know exactly how to get that perfect crackly crust every time.

What makes these potatoes special is the foolproof method that delivers restaurant-quality results at home. You'll need just a few simple ingredients—potatoes, cream of mushroom soup, cheese, and a touch of milk—but the combination creates something truly extraordinary.

The crispy top traps all the creamy, cheesy goodness underneath, making each bite worth the wait. This dish is perfect for feeding a crowd or bringing to gatherings where comfort food is always appreciated.

The magic happens in the oven, where the potatoes bake until tender and the cheese melts into a luscious, golden blanket. The crispy top forms a delicious contrast to the creamy interior, creating a texture that's impossible to resist.

This recipe has become a family favorite, especially during holidays or when we need something hearty and comforting. It's the kind of dish that makes people ask for seconds—and thirds.

Once you try these crispy funeral potatoes, you'll never go back to store-bought versions. The process is straightforward, but the results are anything but ordinary. Let’s get started on creating this cheesy, mushroom-infused comfort classic that will have everyone at the table begging for more.

Ingredients for funeral potatoes recipe with cream of mushroom soup

Six simple ingredients create Nana Mae's legendary cheesy, crispy funeral potatoes everyone craves.

The potatoes are the star, so Russets are non-negotiable—they're the starchy workhorses that hold up to slicing and baking. Grab 4 pounds from the grocery store's produce section, but skip the pre-washed bags (they dry out faster). If you're feeling fancy, Costco sells them in bulk for better value. Peeled and sliced thinly, they'll bake perfectly without turning mushy. Pro tip: Soak them in cold water for 10 minutes before draining to remove excess starch, which helps that crispy top form. The bacon adds smoky depth—thick-cut cooks slower and stays crispier than thin slices.

No cream of mushroom soup? Homemade mushroom sauce works (sauté mushrooms, garlic, flour, and milk), but it takes time. Shortcut: mix 1 cup sour cream with 1 cup milk—it's not identical, but close. The cheese matters too: sharp cheddar gives that tangy kick, but Monterey Jack melts smoother. For extra richness, stir in 2 tbsp cream cheese with the milk. Green onions can be swapped for chives, but they add a fresher pop. The garlic powder is optional, but trust me—it takes this dish to the next level. No bacon? Try crumbled sausage or chopped ham for a different flavor.

These potatoes reheat like a dream—just 5 minutes at 350°F covered with foil. They're even better the next day, so make extras. Store leftovers in the fridge for up to 4 days, but the texture changes slightly. For freezing, assemble the dish, bake until just set (not crispy), then freeze in portions. Reheat from frozen by adding 5 minutes to the baking time. I always double the batch—half for dinner, half for lunches. The crispy top? That's the magic. Don't rush it, and broil for 2 minutes at the end for extra crunch.

Step-by-step instructions for cheesy mushroom clouds over crispy top

Here's how to make these legendary funeral potatoes with a crispy golden crust and creamy mushroom cheese filling.

Start by cooking the 6 oz bacon in a large skillet over medium heat until crispy. Drain on paper towels, then crumble it finely—you'll use it later for extra flavor. While the bacon cooks, peel the 4 lb russet potatoes and slice them into ¼-inch thick rounds. This even thickness ensures they cook uniformly.

Here's the thing—don't skip peeling them! The skin can make the potatoes uneven when they bake. As you slice, soak the potato rounds in cold water for 10 minutes to remove excess starch. This prevents them from sticking together and helps create that crispy top layer we're after.

In a large bowl, combine the 2 cans cream of mushroom soup, 0.5 cup milk, 0.5 cup melted butter, 1 tsp garlic powder, 0.5 tsp black pepper, and 1 tsp salt. Stir until smooth and well mixed. Then fold in the 2 cups sharp cheddar cheese and the crumbled bacon until evenly distributed throughout the mixture.

I like to use freshly grated cheese here—it melts more smoothly than pre-shredded. If you're using pre-shredded, make sure it's the block-style kind (not the powdered kind) for better texture. The mixture should be thick but still pourable—if it's too thick, add a splash more milk to help it spread evenly between the potato layers.

Preheat your oven to 375°F. In a 9x13-inch baking dish, spread a thin layer of the cheesy mushroom mixture on the bottom. Then arrange half of the potato slices in a single layer, slightly overlapping them. Spoon half of the remaining mixture over the potatoes, then add the other half of the potato slices. Finally, spread the last of the mixture evenly over the top layer.

This layering technique is key—it ensures every bite has that perfect combination of crispy potato and creamy mushroom filling. Press down gently on the top layer to help the potatoes hold their shape during baking. The dish should look like a neat stack of potato layers with cheese peeking through the gaps.

Cover the baking dish tightly with aluminum foil and bake for 45 minutes. Then remove the foil and bake for another 15-20 minutes until the top is deep golden brown and bubbly. You'll see the cheese start to brown and form a crispy crust—that's when you know it's ready.

Don't be tempted to walk away during this final uncovered baking time. Watch carefully after 15 minutes—the cheese can go from perfect to burnt in just a few minutes. If it starts to brown too quickly, tent it loosely with foil to slow the browning while still allowing it to crisp.

Remove the dish from the oven and let it rest for 10 minutes before serving. This resting time allows the layers to set slightly and makes it easier to slice. While it rests, sprinkle the 0.25 cup sliced green onions evenly over the top for a fresh pop of color and flavor.

Slice into 6 equal portions (about 2 slices per serving) and serve immediately. The outside should be crispy and golden, while the inside remains creamy and cheesy. Each bite delivers that perfect contrast of textures—crunchy top, tender potato, and rich mushroom filling. Real talk: these disappear fast, so have extra serving spoons ready!

Essential equipment for great funeral potatoes recipe with cream of mushroom soup

Baking Dish Essentials

You’ll need a 9x13-inch baking dish—this size is perfect for even heat distribution and creates that signature crispy top. I recommend CorningWare for its durability and even heating, but any heavy-duty glass or ceramic dish works. Avoid dark-colored dishes—they absorb heat unevenly and can burn the edges.

If you’re feeding a crowd, consider a 10x15-inch dish for extra portions. Pro tip: Grease the dish lightly with butter or nonstick spray before adding the potatoes to prevent sticking. 🧈

Oven Thermometer

Your oven’s temperature gauge can be off by 25°F or more, which is critical for funeral potatoes. I swear by a Thermoworks Oven Thermometer—it clips onto the oven rack and gives real-time readings. If your oven runs hot, reduce the temperature by 25°F to prevent over-browning.

For example, if your oven reads 375°F, aim for 350°F to get that perfect golden crust without burning. This small investment ensures consistent results every time. 🌡️

Cheese Grater

Freshly grated cheese makes all the difference in texture. A microplane or box grater works best—avoid pre-shredded cheese, which contains anti-caking agents that prevent smooth melting. For extra richness, I blend sharp cheddar with a little Monterey Jack (50/50 ratio).

If you’re short on time, a food processor with a shredding blade speeds up the process. Just pulse in short bursts to avoid compacting the cheese. 🧀

Bacon Cooking Tools

Crispy bacon adds smoky depth, so choose the right tools. A cast-iron skillet (like Lodge) is ideal for even heat distribution, but any heavy skillet works. For hands-off cooking, use a bacon press to flatten slices—this renders fat faster and crisps edges.

Drain bacon on paper towels to remove excess grease before crumbling. I also keep a fine-mesh strainer nearby to catch any fallen bits for maximum flavor. 🥓

Foil and Broiler Pan

Heavy-duty aluminum foil is a must for covering the dish during the initial bake. Use double-layered foil for extra insulation if your oven runs hot. For the final crispy top, a broiler pan (or even a wire rack over a baking sheet) elevates the dish for even browning.

If you don’t have one, prop the dish on a folded towel to create airflow. Just watch closely—broilers can turn cheese golden in seconds! ⚡

Serving Tools

Funeral potatoes disappear fast, so have these ready: serving spoons (I love OXO Good Grips for their comfort), a sharp chef’s knife for slicing, and individual ramekins if serving buffet-style.

For presentation, I garnish with green onions and a sprinkle of black pepper right before serving. Keep a small bowl of extra cheese nearby—it’s a crowd-pleaser for seconds! 🍽️

Frequently asked questions