Preheat oven to 375 degrees. Grease a 2-quart casserole dish with butter.
Peel and thoroughly wash potatoes. Thinly slice into 1/8-inch round slices. Begin layering potatoes in bottom of casserole.
Cover 1st layer of potatoes with cracker crumbs, then dot with butter, then sprinkle with salt, pepper, and cheddar cheese. Continue layering everything until all ingredients are used, ending with a cheese layer on top.
Carefully pour milk into the dish, until all layers are covered in liquid. Place casserole uncovered into preheated oven and back at 375 until a knife inserted in the center goes through all the potatoes easily. Let sit 5 minutes, then serve. Makes 8 servings. Enjoy!
Note: If the top cheese starts browning too quickly, you can loosely cover it with a piece of greased aluminum foil. Also, you may omit the cheese if you would like plain scalloped potatoes.