Air Fryer Diced Potatoes with Nacho Cheese Sauce

Name: Air Fryer Diced Potatoes {with Nacho Cheese Sauce}
Prep time: 5 min
Cook time: 25 min
Ingredients: 4 medium potatoes (cubed); 1/2 teaspoon salt; 1/2 teaspoon black pepper; 1 teaspoon garlic powder; 1/2 teaspoon chili powder; 1/2 teaspoon cumin; 1/2 teaspoon Spanish paprika; 1 teaspoon dried parsley; 1/2 cup panko breadcrumbs; 1 tablespoon olive oil; 4 ounces Mexican Velveeta Cheese (cubed); 1/2-3/4 cup milk; sour cream and green onions for serving

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These air fryer diced potatoes are coated in seasonings and panko breadcrumbs and cooked until crispy. Top with a quick nacho cheese sauce, sour cream, and green onions for an easy side dish.

This recipe is a copycat for the cheesy fiesta potatoes that you can get from Taco Bell. But making them at home means you can satisfy your cravings without having to leave your house.

cubed and cooked potatoes in the air fryer with nacho cheese sauce, sour cream, and green onions on a plate.

I love using my air fryer for cooking potatoes because it gives them the crispiness that I want without the mess of using oil in a pan. Don’t just stop at side dishes, I use my air fryer for recipes like pumpkin spice donuts, veggie sandwiches, and empanadas.

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What beer pairs well with air fryer diced potatoes topped with cheese sauce?
The season two everyone is talking about
Ingredients
How to cook diced potatoes in the air fryer step-by-step
How to make easy nacho cheese sauce step-by-step
Tips & Variations
Storage
More air fryer recipes
Air Fryer Diced Potatoes {with Nacho Cheese Sauce}

What beer pairs well with air fryer diced potatoes topped with cheese sauce?

The beer: Blood Orange Honey from Cheboygan Brewing Co.

This wheat beer has a lovely blend of fruit and a slight sweetness from the honey. The blood orange stands out and lends a citrus aroma and taste. A great compliment to the spicy cheese sauce in this dish.

The season two everyone is talking about

For Mitten Movie night, I want to talk about White Lotus, Season 2. Please tell me you are watching this show and you are as obsessed with it as I am. The cast, the drama, the ‘what the WHAT?!’ is happening of it all. I thought season one was perfect but it’s quite possible that season two is even better.

air fryer diced potatoes in a large serving platter.

Ingredients

These cubed potatoes in the air fryer have-

Russet potatoes. This is the type of potato that I always have on hand, but golden or red potatoes would work great as well.
Olive oil and seasonings. The olive oil helps the combination of spices coat evenly to the potatoes.
Panko breadcrumbs. Helps add crunch.
Mexican Velveeta Cheese melted with whole milk. This cheese has jalapeno peppers already incorporated into it to give the cheese sauce a nice kick.

Visit YouTube for a video of how to make these
Air Fryer Diced Potatoes with Nacho Cheese Sauce

How to cook diced potatoes in the air fryer step-by-step

Clean the potatoes and cut them into similar small diced cubes.

Add the potatoes to a bowl and cover with cool, clean water. Let sit for 30 minutes.

cubed potatoes in a bowl. a bowl with water and potatoes in it. a bowl with potatoes in it and a hand using paper towel to dry them off.

Carefully drain the water from the bowl. Take paper towels and dry as much of the water from the potatoes and the bottom of the bowl as you can.

Drizzle with olive oil and add the seasonings. Stir to coat.

Add the panko breadcrumbs and stir to coat the potatoes once more.

cubed potatoes with spices and panko breadcrumbs being poured over them. potatoes added to the basket of the air fryer and a spoon mixing the potatoes.

Pour the potatoes into the basket of the air fryer. Set for 400 degrees for 10 minutes.

Take the air fryer basket out and toss it with a large spoon or tongs. Add the basket back to the air fryer and set it for 5 minutes. Repeat as necessary until the potatoes are cooked through and the outsides are golden.

How long should you air fry diced potatoes?

I like to start by setting the air fryer for 10 minutes. Then I check the potatoes every 5 minutes after that until they get to my desired crispiness. Usually takes about 25 minutes.

How to make easy nacho cheese sauce step-by-step

Cube the Velveeta cheese and add it to a small pot with the milk.

Heat over a low flame and let the cheese slowly melt. Stir to break down the cheese as it melts.

Make this right before serving it with the potatoes.

nacho cheese velveeta cheese sauce in a pan with a spoon holding some up.

Tips & Variations

Do not skip the step of soaking the potatoes. If this step is skipped, you won’t get the crispy potato cubes that you are looking for.
Add diced yellow or red onion with the potatoes while they cook for added flavor.
The cheese sauce can easily burn if the heat is too high. Make sure to put on low heat and let the cheese slowly melt. You may need to add more milk if the sauce is too thick.
If you don’t like spicy, you can use the original Velveeta.
Did you know you can make your own CopyCat Homemade Velveeta with this recipe from Spend With Pennies?

Storage

Place the potatoes and cheese sauce in different covered containers and place them in the refrigerator. Reheat the potatoes in the air fryer and the sauce in the microwave or on the stovetop.

I do not recommend freezing any part of this recipe. Velveeta is shelf stable for up to 6 months. Once it is placed in the refrigerator, it is good for 1 month.

More air fryer recipes

From our home in the Bottom Left of the Mitten to yours ~ Enjoy!