Scalloped potatoes and cheesy potatoes offer two delicious side dishes, but they are quite different when it comes to preparation and ingredients.  Scalloped potatoes consist of thinly-sliced potato layers that are nestled together with a creamy sauce made from milk, butter, flour, and other seasonings. The slices of potato absorb the flavor as they bake in the oven for a delightful end result.  Cheesy potatoes are a mix of diced or shredded potatoes with various cheeses, vegetables, herbs, and spices before being baked in the oven to golden perfection. This difference in ingredients makes each one unique.  Scalloped potatoes take on the flavor of the creamy sauce they're swimming in, usually milk, butter, and flour blended together.  Cheesy potatoes, on the other hand, absorb flavors from cheese and seasonings more intensely than scalloped varieties do.