This oven baked 3-ingredient cream of mushroom potatoes recipe is one of those cozy, hand-me-down dishes that feels like a hug in a pan. My neighbor has been making a version of this for over 30 years, and when she finally shared her secret with me, I realized just how simple it really is: sliced potatoes, cream of mushroom soup, and a splash of milk. Everything bakes together into tender layers of potatoes wrapped in a creamy mushroom sauce with golden edges. It’s the kind of no-fuss, comforting side dish that works on busy weeknights, holiday tables, or potlucks, and it’s easy enough that older kids can help assemble it.
Serve these creamy mushroom potatoes alongside roasted or baked chicken, pork chops, meatloaf, or a simple grilled steak. They’re also lovely with baked ham or a pan of roasted vegetables for a meatless meal. Add a crisp green salad or steamed green beans for something fresh on the side. If you’re feeding a crowd, this dish sits nicely on a buffet and stays warm in a low oven, and it reheats well for next-day lunches.
Oven Baked Cream of Mushroom Potatoes
Servings: 6

Ingredients
2 1/2 pounds russet or Yukon Gold potatoes, peeled and thinly sliced (about 1/8–1/4 inch thick)
2 (10.5-ounce) cans condensed cream of mushroom soup
1 cup whole milk (or 2% milk)
Directions
Preheat your oven to 375°F (190°C). Lightly grease a 2- to 3-quart oval or rectangular baking dish so the potatoes don’t stick.
Peel the potatoes and slice them into thin rounds, about 1/8–1/4 inch thick. Try to keep the slices roughly the same thickness so they cook evenly.
In a medium bowl, whisk together the condensed cream of mushroom soup and the milk until smooth and well combined. The mixture should be pourable and creamy.
Spread a thin layer (2–3 tablespoons) of the mushroom mixture over the bottom of the baking dish. This helps keep the first layer of potatoes from sticking.
Arrange about one-third of the sliced potatoes in an even layer in the dish, slightly overlapping the slices like shingles.
Spoon or pour about one-third of the soup mixture over the potatoes, spreading it gently with the back of a spoon so most of the slices are coated.
Repeat the layering two more times: potatoes, then soup mixture, finishing with the remaining soup mixture on top. Make sure the top layer of potatoes is mostly covered so it bakes up creamy with some golden edges peeking through.
Cover the baking dish tightly with foil. Bake, covered, for 45–55 minutes, until the potatoes are starting to turn tender when pierced with a fork.
Carefully remove the foil (watch for steam). Return the dish to the oven and bake uncovered for another 20–30 minutes, or until the potatoes are very tender, the sauce is bubbling, and the top has golden brown edges.
Let the potatoes rest for 10–15 minutes before serving. This helps the sauce thicken slightly and makes it easier to scoop neat portions. Serve warm straight from the baking dish.
Variations & Tips
For extra richness, you can swap part of the milk for heavy cream (use 1/2 cup milk and 1/2 cup cream). If your family likes cheese, sprinkle 1–1 1/2 cups shredded cheddar or mozzarella between the layers and on top, but note this adds more than three ingredients. To stretch the dish for a crowd, add one thinly sliced onion between the potato layers before pouring on the soup mixture. For picky eaters who dislike visible mushrooms, choose a cream of mushroom soup with smaller pieces or blend the soup and milk together with an immersion blender for a smoother sauce. You can also use cream of chicken or cream of celery soup for a milder flavor. If you need to make it ahead, assemble the dish, cover it tightly, and refrigerate for up to 24 hours; add an extra 10–15 minutes to the covered baking time if starting from cold. For food safety, keep the cream of mushroom soup and milk refrigerated until you’re ready to mix and assemble, and don’t leave the finished dish at room temperature for more than 2 hours. Leftovers should be cooled, covered, and refrigerated promptly, then reheated to steaming hot before serving. Always check that the potatoes are fully tender before serving; thicker slices may need a little extra time in the oven.