Name: Low Carb Philly Cheesesteak Casserole
Prep time: 15 min
Cook time: 45 min
Total time: 1 h 10 min
Yield: 8 servings
Ingredients: 2 lbs ground beef (80/20 fat ratio preferred); 1 large onion, diced; 2 large bell peppers (green, red, or mixed), diced; 2 cloves garlic, minced; 8 oz cream cheese, softened to room temperature; 2 tbsp Worcestershire sauce; Salt to taste; Pepper to taste; 8 oz provolone cheese, sliced; 1.5 cups mozzarella cheese, shredded; 1 tbsp olive oil

Low Carb Philly Cheesesteak Casserole – are you ready to transform your weeknight dinners with an explosion of flavor that’s both incredibly satisfying and perfectly aligned with your low-carb lifestyle? I know I am! This dish takes all the beloved components of the iconic Philadelphia classic and cleverly reconfigures them into a bake-and-serve masterpiece.

While the original Philly cheesesteak has a rich history as a beloved street food originating in the bustling streets of Philadelphia in the 1930s, our casserole pays homage to that delicious legacy. We’ve captured the essence of thinly sliced, perfectly seasoned beef, sautéed peppers and onions, and that irresistible blanket of gooey melted cheese, all without the traditional bun. It’s a modern interpretation that respects its roots!

People absolutely adore this dish, and it’s easy to see why. It offers an unparalleled combination of robust, savory flavors – the tender steak, the sweet caramelized vegetables, and the luxurious, melty cheese – all coming together in one harmonious bite. Beyond its incredible taste and delightful textures, the convenience factor is a huge draw. It’s a fantastic, complete meal solution for busy evenings, allowing you to enjoy a comforting, hearty dish with minimal fuss. This Low Carb Philly Cheesesteak Casserole truly delivers on taste, ease, and dietary goals, making it an instant favorite in any household.

Ingredients:

For the Low Carb Steak Filling:
- 2 lbs thinly sliced ribeye steak or sirloin steak (look for pre-sliced “Philly style” or slice against the grain yourself, about 1/8 to 1/4 inch thick)
- 2 tablespoons olive oil, divided
- 1 large yellow onion, thinly sliced
- 2 large bell peppers (I love using one green and one red for color and a touch more sweetness), thinly sliced
- 8 oz cremini or button mushrooms, sliced (optional, but they add wonderful umami and bulk to this Low Carb Philly Cheesesteak Casserole!)
- 4 cloves garlic, minced
- 1 teaspoon Worcestershire sauce (ensure it’s low carb if strict, or omit)
- 1 teaspoon salt, or to taste
- 1/2 teaspoon black pepper, or to taste
- 1/2 teaspoon onion powder
- 1/2 teaspoon garlic powder
- 1/4 teaspoon smoked paprika (for a hint of smoky depth)
For the Rich & Creamy Low Carb Cheese Sauce:
- 8 oz cream cheese, softened
- 1 cup heavy cream
- 1/2 cup chicken or beef broth (low sodium preferred)
- 4 oz shredded provolone cheese (about 1 cup)
- 4 oz shredded white cheddar cheese (about 1 cup, for extra sharpness and creaminess)
- 1 tablespoon Dijon mustard (optional, but it really brightens the flavor profile)
- 1/2 teaspoon salt
- 1/4 teaspoon white pepper (less visible than black pepper in a light sauce)
- 1/4 teaspoon xanthan gum (for thickening, crucial for a low-carb sauce without flour)
For the Top Layer:
- 6-8 slices provolone cheese (or another 4 oz shredded provolone)
Optional Garnish:
- Fresh chopped parsley
- Red pepper flakes

Preparing Your Low Carb Philly Cheesesteak Casserole Foundation: The Steak and Veggies

Before we dive into the delicious cooking process, let’s get our ingredients prepped. This preparation phase is key to ensuring your Low Carb Philly Cheesesteak Casserole comes together smoothly and efficiently, allowing all the wonderful flavors to meld perfectly.

Prepping Your Steak for Perfection:

If you didn’t buy pre-sliced “Philly style” steak, this is where your knife skills shine! Lay your ribeye or sirloin steak on a cutting board. I find it easiest to slice very thin when the steak is partially frozen – about 30 minutes in the freezer usually does the trick. You want to slice it against the grain, aiming for pieces about 1/8 to 1/4 inch thick. This ensures the steak is incredibly tender and cooks quickly. Once sliced, set it aside. Remember, every little detail contributes to the ultimate enjoyment of this amazing Low Carb Philly Cheesesteak Casserole!
Sautéing Your Aromatics: Onions and Peppers:

Grab a large, heavy-bottomed skillet or a cast-iron pan, because we’re about to build some serious flavor. Heat 1 tablespoon of olive oil over medium-high heat until it shimmers. Add your thinly sliced yellow onion and bell peppers (my personal preference is one green and one red for that fantastic color and balanced sweetness). If you’re using mushrooms, toss them in now too. Sauté these vegetables, stirring occasionally, for about 8-10 minutes. We’re looking for them to soften significantly and start to caramelize slightly – those beautiful browned edges are where so much flavor resides. The natural sugars in the vegetables will start to release, creating a lovely depth that is essential for our Low Carb Philly Cheesesteak Casserole.

Chef’s Tip: Don’t rush this step! Allowing your vegetables to properly soften and develop some color will elevate the entire dish. A little patience here pays off immensely in the final taste of your casserole.
Infusing Garlic Goodness and Searing the Steak:

Once your veggies are tender and slightly caramelized, push them to one side of the pan. Add the remaining 1 tablespoon of olive oil to the empty side of the pan. Toss in your minced garlic and let it cook for about 30-60 seconds, just until it becomes fragrant. Be careful not to burn it! Burnt garlic can turn bitter very quickly, and we want bright, aromatic notes for our Low Carb Philly Cheesesteak Casserole.

Now, add your thinly sliced steak to the pan, spreading it out as much as possible in a single layer. Season the steak directly with 1 teaspoon of salt, 1/2 teaspoon of black pepper, 1/2 teaspoon of onion powder, 1/2 teaspoon of garlic powder, and 1/4 teaspoon of smoked paprika. Let the steak cook undisturbed for 2-3 minutes to get a nice sear, then break it up with your spatula and stir it into the vegetables. Cook for another 3-5 minutes, or until the steak is mostly browned through and no longer pink. You don’t want to overcook the steak at this stage, as it will continue to cook in the oven.
Bringing It All Together:

Pour in the 1 teaspoon of Worcestershire sauce (if using). Stir everything together well, scraping up any browned bits from the bottom of the pan – this is called “deglazing” and it adds an incredible layer of flavor to your filling. Taste the mixture and adjust seasonings if needed. You want this base to be bursting with savory, umami-rich goodness, as it’s the heart of our Low Carb Philly Cheesesteak Casserole. Once seasoned to perfection, remove the skillet from the heat and set it aside. The aroma alone should be making your mouth water!

Crafting the Rich and Creamy Low Carb Cheese Sauce

No Philly Cheesesteak Casserole would be complete without a luscious, cheesy sauce, and for our low-carb version, we’re making one that is incredibly decadent without any starchy thickeners. This sauce is what truly binds all the delicious components of our Low Carb Philly Cheesesteak Casserole together.

Building the Base of Your Sauce:

In a medium saucepan, combine the softened 8 oz cream cheese, 1 cup heavy cream, and 1/2 cup chicken or beef broth. Place the saucepan over medium-low heat. Whisk continuously as the cream cheese melts and incorporates into the liquids. You’re aiming for a completely smooth, lump-free base. This process usually takes about 3-5 minutes. The gentle heat is key here; you don’t want to boil the cream cheese mixture vigorously, just warm it enough to melt and combine everything into a velvety liquid.
Melting in the Cheesy Goodness:

Once your cream cheese mixture is smooth, reduce the heat to low. Gradually add your 4 oz shredded provolone cheese and 4 oz shredded white cheddar cheese, stirring constantly until all the cheese has melted into the sauce. This slow addition and constant stirring prevent the cheese from clumping and ensure a beautifully uniform texture. The provolone brings that classic Philly flavor, while the white cheddar adds an extra layer of sharp, creamy complexity that really makes this Low Carb Philly Cheesesteak Casserole stand out.
Seasoning and Thickening the Sauce:

Now it’s time to perfect the flavor. Stir in the 1 tablespoon of Dijon mustard (if using). This might seem like an unusual addition, but trust me, it adds a subtle tang and depth that truly enhances the cheese flavor without making the sauce taste overtly of mustard. Season with 1/2 teaspoon of salt and 1/4 teaspoon of white pepper.

For thickening without carbs, we’ll use xanthan gum. This powerful thickener requires a light touch. Sprinkle 1/4 teaspoon of xanthan gum over the surface of the sauce while whisking vigorously. Continue whisking for about 1-2 minutes until the sauce visibly thickens to a consistency similar to a creamy gravy. If it’s too thin after a couple of minutes, you can add another tiny pinch (about 1/8 teaspoon) of xanthan gum, but be very sparing, as too much can make the sauce gummy. The goal is a lush, pourable, yet substantial sauce that will cling beautifully to the steak and veggies in our Low Carb Philly Cheesesteak Casserole.

Chef’s Note on Xanthan Gum: Always add xanthan gum slowly and whisk well to prevent lumps. It thickens quickly, so start with less and add more if absolutely necessary. It’s a game-changer for low-carb sauces!
Final Taste Test:

Give your cheese sauce a final taste. Adjust salt or pepper if needed. It should be rich, savory, and wonderfully cheesy. Remove the saucepan from the heat and set it aside while we move on to assembling our masterpiece.

Assembling Your Delicious Low Carb Philly Cheesesteak Casserole

With our flavorful steak and veggie filling ready and our velvety cheese sauce prepared, it’s time to bring all these incredible components together into one glorious Low Carb Philly Cheesesteak Casserole. This is where the magic truly begins to take shape!

Prepping Your Casserole Dish and Oven:

First things first, preheat your oven to 375°F (190°C). While the oven is warming up, lightly grease a 9×13-inch baking dish. A little non-stick spray or a thin swipe of butter ensures that your delicious casserole won’t stick, making serving and cleanup a breeze. This careful preparation is part of what makes this Low Carb Philly Cheesesteak Casserole so enjoyable from start to finish.
The First Layer: Steak and Veggies:

Spoon approximately half of your prepared steak and vegetable mixture into the bottom of the greased baking dish. Spread it out evenly with a spatula to create a uniform layer. This foundational layer is packed with the savory, umami-rich flavors we developed earlier, forming the robust base of your Low Carb Philly Cheesesteak Casserole.
The Second Layer: Creamy Cheese Sauce:

Carefully pour about half of your rich, creamy low carb cheese sauce over the steak and veggies. Use the back of a spoon or spatula to gently spread the sauce so it covers the entire layer. This luscious cheese layer will seep down into the meat and vegetables as it bakes, infusing every bite with cheesy goodness.
Repeating the Layers for Maximum Flavor:

Now, repeat the process! Add the remaining half of the steak and vegetable mixture over the cheese sauce, spreading it out evenly. Then, pour the rest of the creamy cheese sauce over the top, making sure it’s distributed as uniformly as possible. These double layers ensure that you get a fantastic balance of meat, vegetables, and sauce in every single spoonful of your Low Carb Philly Cheesesteak Casserole.
The Grand Finale: Provolone Topping:

For the final touch, arrange your 6-8 slices of provolone cheese (or sprinkle another 4 oz of shredded provolone) evenly over the top of the casserole. These slices will melt down to form a beautiful, golden-brown crust, giving our Low Carb Philly Cheesesteak Casserole that iconic Philly finish.

Baking and Achieving Golden Perfection for Your Low Carb Philly Cheesesteak Casserole

The oven is preheated, the layers are complete, and your kitchen is already starting to smell incredible! Now it’s time to bake your Low Carb Philly Cheesesteak Casserole to golden, bubbly perfection. This final cooking phase allows all the flavors to meld, the sauce to thicken slightly more, and the cheese topping to achieve that irresistible, slightly crispy crust.

Into the Oven We Go:

Carefully transfer your assembled Low Carb Philly Cheesesteak Casserole to the preheated 375°F (190°C) oven. Place it on the middle rack to ensure even baking and browning. This temperature is ideal for heating the casserole through without drying out the ingredients, while also giving us that beautiful golden top.
Baking to Golden, Bubbly Perfection:

Bake for 20-25 minutes, or until the casserole is hot and bubbly around the edges. The provolone cheese on top should be beautifully melted, golden brown, and perhaps even slightly crispy in spots. Keep an eye on it during the last few minutes; if your cheese is browning too quickly but the casserole isn’t quite bubbly enough, you can loosely tent it with aluminum foil to prevent over-browning. The sight and sound of that bubbling cheese are truly satisfying and signal that your Low Carb Philly Cheesesteak Casserole is almost ready to delight your taste buds!

Visual Cue: Look for the sauce gently bubbling up through the cheese on the sides of the dish. This indicates that the internal temperature has reached a safe and delicious level.
The Essential Resting Period:

Once baked to perfection, carefully remove the casserole from the oven. This next step is crucial, so don’t skip it! Let the Low Carb Philly Cheesesteak Casserole rest on a wire rack for at least 10-15 minutes before serving. This resting period allows the sauce to set slightly, preventing it from being too runny when you scoop it out. It also lets the flavors continue to meld and intensify, resulting in an even more harmonious and delicious dish. Cutting into it too soon might mean a messier presentation, so a little patience here goes a long way.
Garnishing and Serving Your Masterpiece:

After resting, your magnificent Low Carb Philly Cheesesteak Casserole is ready to be served! If desired, sprinkle with fresh chopped parsley for a burst of color and freshness, and a few red pepper flakes for a gentle kick. This casserole is incredibly satisfying on its own, making it a complete low-carb meal. You can serve it directly from the dish, spooning generous portions onto plates. It also pairs wonderfully with a simple green salad dressed with a light vinaigrette, or a side of steamed low-carb vegetables like broccoli or asparagus.

Every scoop will reveal tender, flavorful steak and vegetables swimming in a rich, creamy, cheesy sauce, all topped with that irresistible melted provolone. This Low Carb Philly Cheesesteak Casserole is not just a meal; it’s a comforting, flavor-packed experience that you’ll want to make again and again!

Conclusion:

Well, my friends, we’ve journeyed through the steps of creating something truly spectacular, and I honestly can’t wait for you to experience it firsthand. This isn’t just another dish; it’s a culinary revelation, a testament to how incredible and satisfying low-carb eating can be without ever feeling like you’re missing out. When I first perfected this recipe, I knew it was going to be a staple in my own kitchen, and now I’m absolutely thrilled to share it with all of you.

Why This Recipe Is an Absolute Game-Changer

So, why is this particular recipe an absolute must-try for everyone, regardless of your dietary preferences? Simply put, it delivers on every single front: flavor, convenience, and health. Imagine sinking your teeth into tender, perfectly seasoned steak, caramelized onions and peppers, all smothered in a rich, creamy, and undeniably cheesy sauce, baked to golden perfection. This Low Carb Philly Cheesesteak Casserole captures all the iconic tastes and textures of a classic Philly cheesesteak sandwich, but without the carb-heavy bun, making it an incredibly smart choice for anyone looking to reduce their carbohydrate intake without sacrificing an ounce of flavor. It’s hearty enough to satisfy even the biggest appetites, yet light enough to leave you feeling energized rather than weighed down. The ease of preparation, combined with its fantastic make-ahead potential, means you can enjoy a gourmet-level meal on even the busiest weeknights. It’s comforting, deeply flavorful, and incredibly versatile, truly ticking all the boxes for a winning recipe in my cookbook.

Creative Ways to Serve Your Masterpiece

Now that you’ve got this amazing casserole, let’s talk about how to make it even more of an event. While it’s certainly a complete meal on its own, a fresh, crisp side salad with a tangy vinaigrette would cut through the richness beautifully, offering a lovely textural contrast. For a touch of green, consider a simple side of steamed broccoli or asparagus, perhaps lightly tossed with garlic and olive oil. If you’re serving this to guests, a sprinkle of fresh chopped parsley or chives right before serving adds a pop of color and freshness. For those who aren’t strictly low-carb, a small side of cauliflower rice or even a piece of good quality, crusty low-carb bread for dipping into that glorious cheesy goodness would be delightful. Don’t forget a perfectly chilled glass of unsweetened iced tea or sparkling water with a squeeze of lemon to complement the meal.

Endless Possibilities: Customizing Your Casserole

One of my favorite things about this recipe is how wonderfully adaptable it is. Feel free to unleash your inner chef and experiment! Not a fan of green bell peppers? Swap them for red, yellow, or even orange ones for a sweeter note. If you love a bit of heat, a diced jalapeño or a pinch of red pepper flakes mixed in with the vegetables would provide a fantastic kick. While provolone is traditional, feel free to experiment with other cheeses; a blend of Monterey Jack and a sharp cheddar could add another layer of complexity. You could even stir in some sautéed mushrooms with the onions and peppers for an earthy depth. For those who enjoy an extra protein boost, feel free to add a bit of crispy crumbled bacon on top during the last few minutes of baking. The possibilities are truly endless, allowing you to tailor this delicious casserole perfectly to your family’s tastes.

Your Turn: Time to Get Cooking and Share!

Seriously, I urge you to give this phenomenal recipe a try this week. It’s more than just a meal; it’s an experience waiting to happen in your kitchen. I’m absolutely confident that once you taste the incredible flavors and feel the satisfaction of a truly hearty and wholesome meal, this Low Carb Philly Cheesesteak Casserole will earn a permanent spot in your regular rotation. Don’t just make it, savor it! And please, please, please, when you do, come back and share your experience with me and our community. What did you love most about it? Did you try any exciting variations? Your feedback and photos truly inspire me and fellow home cooks. I cannot wait to hear about your delicious success. Happy cooking!