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First things first, let's get those potatoes ready for our Smothered Lamb & Scalloped Potato Casserole. Peel your russets and slice them thinly, about 1/8-inch thick. A mandoline makes this super easy, but a sharp knife and a steady hand work just as well. I once tried to rush this step and ended up with uneven slices, which meant some were crunchy and some were mushy – oops! Try to keep them uniform for a perfectly cooked casserole. Next, pat your lamb chops dry with paper towels; this is crucial for a good sear. Season them generously with salt and pepper all over.
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Heat a large oven-safe skillet (cast iron is my favorite for this!) over medium-high heat with a good glug of olive oil. Once shimmering, add your seasoned lamb chops. Sear them for about 3-4 minutes per side, until they're beautifully browned and have a nice crust. We're not cooking them through here, just building flavor. This step is where so much of the richness for the Smothered Lamb & Scalloped Potato Casserole comes from. Don't overcrowd the pan; work in batches if you need to. Once seared, remove the lamb and set aside on a plate.
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In the same skillet, reduce the heat to medium. Add the butter and let it melt. Toss in your chopped onions and sauté until they're soft and translucent, about 5-7 minutes. Then, add the minced garlic and cook for another minute until fragrant – oh, that smell! Stir in the flour and cook for 1-2 minutes, creating a roux. This is where the magic happens for our creamy Smothered Lamb & Scalloped Potato Casserole sauce. It’ll look a bit clumpy, but that’s okay!
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Gradually whisk in the chicken broth, making sure to scrape up any browned bits from the bottom of the pan – that's pure flavor right there! Once smooth, slowly pour in the whole milk, whisking constantly to avoid lumps. Add the bay leaf and fresh thyme sprigs. Bring the sauce to a gentle simmer, stirring occasionally, until it thickens slightly, about 5-7 minutes. Season the sauce generously with salt and pepper to taste. Honestly, this is where I always forget to taste, but it’s so important to get it right for the Smothered Lamb & Scalloped Potato Casserole!
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Now for the layering! In a large casserole dish (or if your skillet is oven-safe, use that!), spread a thin layer of the sauce on the bottom. Arrange about half of your sliced potatoes in an even layer over the sauce. Place the seared lamb chops on top of the potatoes. Pour about half of the remaining sauce over the lamb and potatoes. Finish with the rest of the potatoes, overlapping them slightly. Pour the remaining sauce evenly over the top, making sure all the potatoes are covered. This ensures everything gets gloriously tender in the Smothered Lamb & Scalloped Potato Casserole.
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Cover the casserole dish tightly with foil and bake in a preheated oven at 375°F (190°C) for 45 minutes. Then, remove the foil and continue baking for another 30-45 minutes, or until the potatoes are fork-tender and the top is golden brown and bubbly. You want to see that rich, creamy sauce bubbling around the edges. Let it rest for 10-15 minutes before serving; this helps the sauce set and makes the Smothered Lamb & Scalloped Potato Casserole easier to portion. It’s hard to wait, I know