I made the mistake of letting my kids try this once, and they promptly announced they were going keto too, just to keep eating it. Keto Philly cheesesteak casserole has all the flavor of the sandwich, minus the bread.

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My kids get theirs with pasta on the side, and I eat mine plain, usually with Zucchini Spaghetti underneath. Next time, I am making a double batch, since this disappears fast at my table.
Shred your own cheese instead of buying it pre-shredded. Bagged shredded cheese is coated in starch to prevent clumping, and it changes how the sauce melts.
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Chef Jenn’s Take on Philly Cheesesteak Casserole
Bagged, pre-shredded cheese is coated with an anti-caking starch to keep it from clumping in the bag, and that coating changes how it melts and adds carbs you do not need in a dish like this. Shredding your own block cheese solves both problems at once.
For the beef, thinly shaved ribeye is classic, and some grocery stores carry it frozen, or a butcher can slice it for you. Ground beef works as a substitute if you cannot find it, and one reader suggested thin-sliced London broil as a cheaper option that works just as well.
Green bell pepper saves a bit on carbs compared to red, though red brings more color to the dish if that matters more to you. Whichever oven-safe dish you use, look for one with plenty of surface area, that is where the cheese gets browned and bubbly, and more surface means more of that good part.
This is genuinely make-ahead friendly. Assemble everything up to the point of baking, then refrigerate until you are ready, or freeze it either baked or unbaked for later.
What You’ll Love About Philly Cheesesteak Casserole
- Works well with pasta for non-keto family members alongside the keto version.
- Tastes like the sandwich version, minus the bread getting in the way.
- Make-ahead friendly, so it can be assembled well before it needs to go in the oven.
Ingredients

- Ribeye beef – Thinly shaved. Ground beef or thin-sliced London broil both work as substitutes.
- Mushrooms – Quartered.
- Onion – Sliced.
- Bell peppers – Sliced. Green saves a bit on carbs, red brings more color.
- Garlic powder – Fresh minced garlic works too, in a slightly smaller amount.
- Beef stock – Low sodium or unsalted, so you control the seasoning yourself.
- Heavy cream and cream cheese – Full fat for both, softening the cream cheese first helps it blend smoothly.
- Provolone cheese – Shred it yourself from a block. Mozzarella or another mild cheese works too.
- Xanthan gum – Optional, for a thicker sauce.
How to Make Philly Cheesesteak Casserole
Scroll down for the full recipe card with exact measurements and printable instructions.
Heat the oil in a large skillet over medium-high heat. Add the onions and beef, cooking for 3 to 5 minutes until the onions turn translucent. Drain any accumulated liquid.

Add the mushrooms and continue cooking for 3 to 4 minutes, until softened. Add the bell peppers.

Turn the heat down to medium and add the beef stock, garlic powder, and cream cheese. Stir well until the cream cheese has melted and combined.

Add the heavy cream and heat through until just boiling. Season with salt and pepper. For a thicker sauce, whisk in a small amount of xanthan gum.

Pour the mixture into an oven-safe casserole dish or individual dishes and top with the shredded cheese. Broil for about 3 minutes, or until bubbly and browned on top.
Make It A Meal
I eat this most often over Zucchini Spaghetti, which gives the creamy sauce something to soak into. Garlicky Swiss Chard works well on the side too, something green balances the richness.
For a lighter vegetable option, Keto Grilled Veggies rounds out the plate nicely.

Storage
Store leftovers in an airtight container in the fridge for up to 4 days. Reheat in a 350°F oven until hot and bubbly, or in the microwave. To freeze unbaked, skip the cheese topping and freeze up to 3 months. To freeze baked, chill fully overnight, then wrap tightly in plastic and foil.
Frequently Asked Questions
It only takes about 15 minutes to prep, and about 15-20 minutes to bake.
Absolutely! Feel free to add/swap your favorite veggies.
Absolutely! Use whatever cheeses you like, or no cheese at all!
This recipe runs about 7 net carbs per 3/4 cup serving. The number in the recipe card below will recalculate once this post is republished, so use it as an estimate until then.
Philly Cheesesteak Casserole
Ingredients
- 1 pound thinly shaved ribeye beef
- 8 ounces mushrooms quartered
- 1/2 cup onion sliced
- 1 cup bell peppers sliced
- 1 tablespoon cooking oil
- 1 tablespoon garlic powder
- 1 cup beef stock low sodium or unsalted
- 1 cup heavy cream
- 4 ounces cream cheese softened
- 1 cup provolone cheese shredded
Instructions
- Heat the oil in a large skillet over medium-high heat. Add the onions and the beef, and cook 3-5 minutes until the onions are translucent. Drain any accumulated liquid.
- Add the mushrooms and continue cooking another 3-4 minutes until mushrooms are softened. Add the bell pepper.
- Turn the heat down to medium and add the beef stock, garlic powder, and cream cheese. Stir well until the cream cheese has melted and mixed with the other ingredients. Add the cream and heat through until just boiling. Check for salt and pepper, adding if necessary.
- **Optional. Thicken the liquid with 1 tbsp of cornstarch mixed with 2 tbsp of cold water. Add this to the simmering liquid, stirring well to combine. This will add an extra 1.5 carbs per serving.
- Pour the mixture into an oven-safe casserole (or individual casseroles) and top with the shredded cheese. Heat under the broiler for 3 minutes or until bubbly and brown on top. Enjoy!
Video
Notes
Recipe Card Tips
- Shred your own cheese instead of buying it pre-shredded. Bagged cheese is coated in starch that changes how it melts.
- Use an oven-safe dish with plenty of surface area. More surface means more browned, bubbly cheese on top.
- Assemble this ahead of time up through the baking step. It refrigerates well before its final trip under the broiler.
Nutrition
A Note on Nutritional Information
Nutritional information for this recipe is provided as a courtesy and is calculated based on available online ingredient information. It is only an approximate value. The accuracy of the nutritional information for any recipe on this site cannot be guaranteed. Erythritol carbs (sugar substitutes) are not included in the carbohydrate counts as they have been shown not to impact blood sugar, and they have zero calories and zero carbs. Net carbs are the total carbs minus fiber.
Want even more keto deliciousness? Check out these keto soups and chowders, keto grilled veggies, and for breakfast, keto egg bites. Wash it all down with a keto cocktail!








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You kids are funny, but I’d switched to a keto diet in a heartbeat too if it means yummy dishes like this everyday. 🙂
Ya, nobody is suffering from lack of good food in my house!
Sounds like a hearty and tasty dish! A yummy mix of flavors.
What a great idea to put a philly cheesesteak into a casserole!! I love this idea
Hope you get to try it!
What a comforting meal for the winter! I know my family would absolutely love this and it’s wonderful to have a naturally low-carb recipe on hand.
This casserole is awesome. I love how cheesy it is!
Philly Cheesesteak is simple the best! love how this is in casserole form without the bread!
Oh so tasty and delicious – I don’t blame your kids for wanting to switch to keto. You’ve convinced me just about also! A superb dish 🙂
Really delicious! A new favorite meal at my house!
Thin sliced London broil would probably work also. May be cheaper than ribeye.
Great suggestion! Thanks!
What a genius idea to make a casserole with philly cheesesteak. It looks colorful, cheesy and so inviting. I probably get on keto-diet too 🙂
Yum! This looks so delicious and flavor filled! I can’t wait to make this!
Looks so easy to make and so delicious! Perfect family meal.
One of my favorite casserole recipes! So comforting!