Easy zucchini and squash casserole made with tender yellow squash and zucchini, baked in a rich cream sauce with plenty of cheese. This creamy, cheesy squash casserole is a comforting vegetable side dish for family dinners, potlucks, Thanksgiving, and holiday meals.
Prep: Grease a 9x13-inch baking dish with a little butter and set aside. Cut the zucchini and yellow squash into ½-inch thick slices. Place in a colander, sprinkle with salt, and let drain.
Make the cream sauce: Melt the butter in a 2-quart saucepan over medium heat. Whisk in the flour and cook for 2 minutes, continuing to whisk. Slowly add the milk and Italian seasoning, whisking constantly until smooth. Simmer for 8 to 10 minutes, whisking frequently, until the sauce thickens.
Season the vegetables: Use paper towels to pat the squash and zucchini as dry as possible, then transfer them to a large bowl. Add the garlic, ½ tablespoon of olive oil, and salt and pepper to taste. Toss to combine.
Sauté: Heat the remaining 1 tablespoon of olive oil in a large skillet over medium-high heat. Add the squash and zucchini and cook for 3 minutes, or until they just begin to soften, stirring frequently. Remove from the heat, drain any excess juices, and set aside.
Layer: Spoon ¾ cup of the cream sauce over the bottom of the prepared baking dish. Arrange half of the squash mixture over the sauce. Sprinkle with 1 cup of mozzarella and ⅓ cup of Parmesan. Add the remaining squash mixture, then cover with the remaining cream sauce and sprinkle with the remaining mozzarella and Parmesan. Sprinkle the Panko breadcrumbs over the top and drizzle with a little olive oil.
Bake: Bake for 30 to 35 minutes, or until the top is golden brown and the casserole is bubbling around the edges.
Cool, then serve: Remove from the oven and let cool for 10 minutes. Top the casserole with fresh parsley and grated Parmesan. Serve warm.