Philly Cheesesteak Casserole

This irresistible Philly cheesesteak casserole captures everything you love about the classic sandwich - tender shaved steak, perfectly caramelized peppers and onions, and an abundance of melty cheese that stretches with every forkful. By skipping the bun and transforming these iconic flavors into casserole form, you get all the satisfaction without any filler. The combination creates a comforting, savory dish that brings authentic Philadelphia street food right to your dinner table.

I served this at my brother's birthday gathering last month, and even my picky nephew who 'hates casseroles' went back for seconds. There's something about that combination of tender beef and gooey cheese that wins over absolutely everyone. My brother later confessed he snuck the small amount of leftovers home and ate them cold straight from the container at midnight!

Key Ingredients

• Shaved steak: The thinner the beef, the more tender your casserole will be; partially freezing before slicing makes this much easier to achieve
• Bell peppers: A combination of red and green creates the perfect balance of sweetness and traditional flavor; look for firm peppers with glossy skin
• Onions: Yellow onions caramelize beautifully, developing a natural sweetness that balances the savory elements
• Garlic: Fresh minced garlic provides aromatic depth that transforms the dish; crush it and let it rest for 10 minutes before cooking to maximize flavor
• Cream cheese: Full-fat varieties melt perfectly to create a silky sauce base that binds everything together
• Half and half: The moderate fat content creates luxurious texture without making the dish too heavy
• Cheddar cheese: Freshly grated melts infinitely better than pre-shredded; the sharpness cuts through the richness
• Pepper jack cheese: Adds a gentle heat that complements the beef perfectly; the creaminess enhances the overall texture

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Detailed Cooking Instructions

Step 1:

Begin by preheating your oven to 375°F and lightly greasing a 9×13-inch baking dish with a thin layer of butter or cooking spray. The size of this dish is crucial for achieving the perfect cheese-to-filling ratio, so avoid substituting a different sized pan.

Step 2:

If your steak isn't pre-sliced, place it in the freezer for approximately 20 minutes until slightly firm but not frozen solid. This makes creating paper-thin slices significantly easier. Using your sharpest knife, slice against the grain into strips no thicker than 1/8-inch. The thinness ensures tender meat that integrates perfectly with the vegetables.

Step 3:

Melt 2 tablespoons of butter in a large skillet over medium-high heat until it begins to foam but not brown. Add the thinly sliced steak in a single layer, working in batches if necessary to avoid overcrowding. Overcrowded meat steams rather than browns, so patience here pays dividends in flavor.

Step 4:

Season the cooking steak with 1 teaspoon salt and 1/2 teaspoon freshly ground black pepper, stirring occasionally until no pink remains but being careful not to overcook. The meat will continue cooking in the oven, so removing it when just done prevents toughness later. Transfer to a plate and set aside.

Step 5:

In the same skillet, add another tablespoon of butter if needed, then add 1 large thinly sliced onion and 2 thinly sliced bell peppers (1 green and 1 red for traditional flavor). Cook over medium heat for 7-9 minutes, stirring occasionally until the vegetables soften and begin to caramelize at the edges. The natural sugars in the vegetables will develop during this process, creating complex flavor.

Step 6:

Add 3 minced garlic cloves to the softened vegetables and cook for just 30-45 seconds until fragrant. Cooking garlic briefly prevents bitterness while still releasing its essential oils and flavor compounds.

Step 7:

Reduce the heat to medium-low and add 8 ounces of softened cream cheese cut into smaller pieces. Whisk constantly until the cream cheese completely melts, using the back of your spoon to break up any stubborn pieces against the side of the pan.

Step 8:

Slowly pour in 1/2 cup of half and half while continuously whisking to create a smooth, velvety sauce. Allow the mixture to gently simmer for 2-3 minutes until it thickens slightly, stirring frequently to prevent scorching on the bottom.

Step 9:

Return the cooked steak to the skillet along with any accumulated juices. These juices contain concentrated beef flavor that will enhance your sauce. Fold everything together until the meat is evenly distributed throughout the vegetable-cheese mixture.

Step 10:

Add 1 cup of freshly shredded cheddar cheese and half of the shredded pepper jack cheese (about 3/4 cup) to the skillet. Stir until the cheese melts and incorporates completely into the mixture, creating a cohesive, creamy filling.

Step 11:

Transfer the entire mixture to your prepared baking dish, spreading it into an even layer. Top with the remaining pepper jack cheese, ensuring complete coverage for that perfect golden crust.

Step 12:

Bake uncovered in the preheated oven for 20-25 minutes until the edges bubble vigorously and the top develops an irresistible golden-brown color with slightly crispy edges. If needed, broil for the final 1-2 minutes for extra color, watching carefully to prevent burning.

Step 13:

Allow the casserole to rest for at least 10 minutes before serving. This resting period is crucial as it allows the cheese to set slightly while still maintaining that perfect lava-like consistency when served.

The Perfect Cheese Blend

Finding the right cheese combination makes all the difference in this casserole. While cheddar provides familiar sharpness and pepper jack adds complexity, I've discovered that adding just a quarter cup of provolone creates that authentic Philly cheesesteak stretch when you serve it. The key is using freshly grated cheese – pre-shredded varieties contain anti-caking agents that prevent the cheese from melting properly and create a grainy texture rather than the silky smoothness we're after.

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Making It Your Own

This recipe shines as a foundation for personalization. My husband loves when I add a handful of chopped mushrooms with the peppers and onions, sautéing them until they release their moisture and begin to brown. For a more substantial meal, I've folded in 2 cups of cooked cauliflower rice just before baking, which soaks up the flavorful sauce beautifully while keeping the dish low-carb. When serving children, I often substitute the pepper jack with mild provolone or mozzarella for a more kid-friendly version.

The Secret to Perfect Texture

The biggest challenge with meat casseroles is preventing them from becoming dry during baking. I've found that adding just 2 tablespoons of beef broth to the mixture before baking maintains moisture without making it soggy. Another technique that works beautifully is layering – put half the cheese on top of the meat mixture in the baking dish, then the remaining meat mixture, then the final cheese layer. This creates pockets of melty cheese throughout rather than just on top.

My family discovered that letting the casserole sit overnight in the refrigerator and reheating portions the next day intensifies the flavors remarkably. Something magical happens as those ingredients meld together - it's almost better than when freshly made!

I've been making this casserole for nearly five years now, and it never fails to impress. What began as a weeknight experiment has become my most-requested dish for potlucks and family gatherings. There's something deeply satisfying about transforming a humble sandwich into a gathering-worthy casserole that brings people together. The way the cheese pulls into those perfect stretchy strands when serving makes everyone smile before they even take their first bite - and isn't that what comfort food is really all about?

Frequently Asked Questions

→ What cuts of beef work best for this casserole?

Sirloin is ideal, but ribeye, strip steak, or even beef round can work well when thinly sliced. Ask your butcher to thinly slice the meat for you to save time.

→ Can I use pre-sliced steak or deli meat?

Yes! Pre-sliced beef like Steak-umms or even deli roast beef can be used for a quick shortcut, though they may have a slightly different texture.

→ Is this recipe keto-friendly?

Yes, with only 5g carbs and 3g net carbs per serving, this casserole fits perfectly into a keto or low-carb diet plan.

→ What can I substitute for the cream cheese?

Mascarpone makes a great substitute, or you can use more shredded cheese mixed with a bit of heavy cream if you don't have cream cheese on hand.

→ Can I add mushrooms to this casserole?

Absolutely! Sliced mushrooms are a great addition. Add them when cooking the peppers and onions and sauté until they've released their moisture for the best flavor.