
Scalloped potatoes are one of those deeply comforting dishes that can feel off-limits when you're avoiding dairy, but this version proves that's simply not the case. The secret is a silky cashew cream sauce blended with vegetable broth, nutritional yeast, smoked paprika, and garlic — it bakes into something genuinely rich and luscious, with none of the heaviness of a traditional béchamel. Keeping the surface starch on the potato slices is a smart trick that helps the sauce thicken naturally as everything bakes together. Layers of Yukon Gold potatoes and softened yellow onion soak up all that smoky, savory flavor, and a final dusting of smoked paprika on top gives the finished dish a gorgeous, burnished color. After a covered bake to get the potatoes perfectly tender, the foil comes off so the top can turn golden and the edges can bubble — the kind of visual that makes everyone crowd around the oven. A ten-minute rest before serving lets the sauce settle into a creamy, cohesive coating rather than a loose pool. This one serves six and holds up beautifully as a centerpiece side for a holiday table or a cozy weeknight dinner.
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Preheat the oven to 375°F (190°C). Lightly grease a 9x13-inch baking dish with olive oil.
Drain the soaked cashews and add them to a blender along with the vegetable broth, nutritional yeast, garlic, smoked paprika, onion powder, salt, black pepper, and lemon juice. Blend on high for 60–90 seconds until completely smooth and no grit remains when rubbed between two fingers.
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