Simple, creamy and delicious, this taco potato haystack casserole consists of a layer of creamy potatoes followed by ground beef and last but not least, cheese sauce.

Taco potato haystack casserole is a tried and true comfort food that we love! Top with crushed Doritos, shredded lettuce, and salsa or your favorite taco toppings and just like that – you’ve got a delicious meal! This is a favorite around here because it is made with minimal ingredients you most likely already have on hand.
However sometimes we have those days when cooking inspiration seems all but gone and dinner is fast approaching! “What shall we make for dinner?” I wonder. I know – taco potato haystack casserole!
In our Mennonite culture it is standard to make a great majority of our food and meals from scratch. We buy meat in bulk from local farmers and get it butchered locally as well to stock our freezer, which saves us time and money.
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Supplies You May Need
Check out the products we like and use regularly below!
- Peeler – to peel those potatoes
- Whisk – whisk the cheese sauce
- Grater or food processor – to shred the potatoes
- Frying pan – to cook and brown the ground beef
- Two saucepans – one to cook the potatoes and one to make the cheese sauce
- Colander – this thing makes draining the grease from the ground beef super easy!
- 9 x 13 baking pan – or some similar sized baking dish
Ingredients
For the potato layer:
- Cooked, shredded potatoes: we used russet but any work well!
- Sour cream
- Milk: whole milk is our preference!
- Ranch dressing mix
Ground beef mixture:
- Ground beef
- Onion: chopped finely (or not so fine if that’s your thing!)
- Salt: regular iodized table salt is usually what we use, though we switch it up now and then.
- Pepper: ground, black pepper
- Taco Seasoning
Cheese sauce topping:
- Butter: salted, in this case.
- Flour: all-purpose.
- Salt
- Milk: again, we prefer whole milk
- Cheese: we like to use Velveeta cheese
How to make Taco Potato Haystack Casserole
It all starts with a layer of shredded potatoes. To begin, peel your poatoes and cook whole in a pot of boiling water for about 15 to 20 minutes or until a fork can pierce them easily.
While the potatoes are cooking, fry the ground beef with the diced onion until fully cooked then transfer to a colander to drain the excess grease.
Here’s where it gets crazy, and your multi-tasking skills will be put to the test. (Don’t panic, if we can do it so can you!) While both the potatoes and beef are cooking, break out a little saucepan and start on the cheese sauce!
Melt the butter first of all; once it’s completely melted add the flour and whisk until smooth. Keep on whisking while slowly adding in the milk and salt. Stir often until it thickens slightly then remove from heat and add velveeta cheese. Stir occasionally until the cheese is all melted, resulting in a smooth lovely cheese sauce.
By now the potatoes should be finished cooking so drain off the hot water and immediately submerge the potatoes in ice water.
If you haven’t already transferred the ground beef to a colander or strainer to drain the excess grease, do so now. Then return to the pan and mix with the salt, pepper, and taco seasoning then set ground beef mixture aside.
Using a grater or food processor with a grater, shred the potatoes then mix with sour cream, milk and ranch seasoning.
In a greased 9 x 13 baking pan, layer the potato mixture…

followed by the ground beef mixture…

and last but not least, top with the cheese sauce.

Cover with aluminum foil and bake at 350 degrees for 1 hour.

To serve, garnish with parsley if you wish. Options for toppings include but aren’t limited to: crushed Doritos or tortilla chips, shredded lettuce, and salsa. Enjoy!

Store leftovers in the refrigerator for up to 4 days.
Notes and Variations
To simplify this recipe you can use a 2 lb. bag of shredded potatoes from the store instead of cooking and shredding your own.
You can also buy canned cheese sauce though you may need to dilute it with milk or according to package instructions to get it to the right consistency. (And in our opinion this option doesn’t taste as good!)
This is good with or without toppings; however, you can add any of your favorite taco or haystack toppings!

Taco Potato Haystack Casserole
Simple, cheesy, and delicious, this taco potato haystack recipe is a layered casserole consisting of creamy potatoes, taco meat, and cheese sauce. Hearty and comforting, year round!
Ingredients
- 5 large potatoes, peeled, cooked, and shredded
- 1 cup sour cream
- 1 cup milk
- 1 package Hidden Valley ranch dressing mix
Ground Beef Layer
- 1 pound ground beef, thawed
- 1 onion, diced
- 1 tsp. salt
- 1/2 tsp. pepper
- 1 package taco seasoning
Cheese Sauce
- 4 tbsp. butter
- 4 tbsp. flour
- 1/2 tsp. salt
- 2 cups milk
- 8 ounces Velveeta cheese
Instructions
- Peel and cook whole potatoes, for 15 to 20 minutes or until soft.
- Dice onion and cook with the ground beef in a separate pan.
- Start on the cheese sauce: Melt the butter completely and whisk in the flour until smooth. Slowly add milk while still stirring. Cook until thickened slightly then remove from heat and add Velveeta cheese. Set aside, stirring occasionally, until all the cheese is melted.
- Preheat oven to 350 degrees.
- By now the potatoes should be soft; drain the hot water off and immediately submerge potatoes in ice water.
- Transfer the cooked ground beef and onion to a colander to drain off excess grease. Return to the pan and mix with the salt, pepper, and taco seasoning. Set aside.
- Using a grater, shred the potatoes and mix with the sour cream, milk, and ranch dressing mix.
- In a greased 9 x 13 baking casserole dish, spread the potato mixture on the bottom, followed by the ground beef mixture and then the cheese sauce. Bake for 1 hour at 350 degrees.
- Garnish with parsley and your choice of toppings (crushed Doritos, shredded lettuce, salsa, etc.) and enjoy!
- Store leftovers in the fridge for up to 4 days.
Notes
Instead of cooking and shredding your own potatoes, you can use a 2 pound bag of cooked, shredded potatoes from the store.
Use a deep dish baking pan to avoid having the casserole run over in the oven.
Add any toppings you desire to make this casserole perfect for you and your family, or eat it as is!
Nutrition Information:
Yield:
8Serving Size:
1Amount Per Serving: Calories: 598Total Fat: 29gSaturated Fat: 16gTrans Fat: 1gUnsaturated Fat: 9gCholesterol: 113mgSodium: 1354mgCarbohydrates: 55gFiber: 5gSugar: 11gProtein: 30g
Have you tried Taco Potato Haystack Casserole?
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Thank you!
for visiting our small town! Check out more small town faves here.
’til next time,
Julie
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