Gather all ingredients.
Bring a large pot of salted water to a boil. Cook potatoes in boiling water until tender, 8 to 10 minutes. Refrigerate potatoes for 8 hours to overnight.
Preheat the oven to 350 degrees F (175 degrees C). Grease a 9x13-inch casserole dish.
Grate cooked potatoes into a large bowl. Combine melted butter, onion, parsley, salt, and pepper in a small bowl. In a separate small bowl, mix sour cream and milk.
Layer ½ of the potatoes into the bottom of the prepared casserole dish. Sprinkle with ½ of the butter and onion mixture. Pour ½ of the sour cream mixture over the top; cover with ½ cup shredded cheese. Repeat with remaining ingredients.
Bake casserole in the preheated oven until cheese on top is lightly browned, about 1 hour.
Serve hot and enjoy!
