Southwestern Skillet Potatoes Recipe with Peppers and Onions

These tender skillet potatoes are sautéed with bell pepper, onion, and simple seasonings for a savory side that works for breakfast, lunch, or dinner. Crispy on the outside and soft inside, they’re easy to make and perfect to repeat.

Update: This recipe was originally published in 2020 and has been republished with all new photos.

I grew up in a home where skillet potatoes were a nearly constant presence at the table. That tradition inspired several skillet-style recipes over the years, and this version—potatoes with peppers and onions—is one of my favorites because it’s both simple and versatile. It’s a dependable side that complements eggs for breakfast, pairs well with sandwiches for lunch, and rounds out an easy weeknight dinner.

If you’re looking for other potato preparations, consider Skillet Breakfast Potatoes, Easy Diced Air Fryer Potatoes, Easy Seasoned Oven Roasted Potatoes, or Crispy Lemon Roasted Potatoes for different textures and flavors.

Ingredients for Southwestern Skillet Potatoes

• 3 tablespoons olive or avocado oil
• 1½ pounds potatoes, diced and left unpeeled (Yukon Gold, russet, red, baby, or fingerling)
• 1 bell pepper, diced; any color works (a mix of red and green is nice)
• ½ white or yellow onion, diced
• ½ teaspoon salt
• ½ teaspoon black pepper
• ½ teaspoon garlic powder
• ¼ teaspoon paprika

How to make Southwestern Skillet Potatoes

Heat the oil in a large skillet over medium-high heat. When the oil shimmers, add the diced potatoes, bell pepper, and onion. Sauté, stirring occasionally, until the sides of the potatoes are golden brown—about 10–15 minutes depending on the size of your dice. Once the potatoes have developed color, add the salt, black pepper, garlic powder, and paprika; stir to combine.

After seasoning and browning, cover the skillet and lower the heat to medium or medium-low. Cook until the potatoes are tender when pierced with a fork, usually another 5–10 minutes. Taste and adjust seasoning if needed. Serve warm, with hot sauce or your favorite condiment if desired.

What kind of potatoes should you use?

Yukon Golds are my top pick for this dish because they have a naturally buttery flavor and hold their shape well while cooking. Russets, red potatoes, fingerlings, and baby potatoes also work; sweet potatoes can be substituted for a different, slightly sweeter result. Keep the skins on to save prep time and help the pieces stay intact during cooking.

Tips for the Best Potatoes

1. Leave the skins on. Peeling is extra work and the skins help the potatoes keep their shape while sautéing.
2. Start uncovered. Browning first gives a crisp, flavorful exterior; cover only after you get that color so the potatoes finish soft without becoming mushy.
3. Use a large skillet and stir often. Potatoes need contact with the pan to brown evenly; spread them in a single layer when possible and keep them moving so every piece gets a turn.
4. Turn into a main dish by adding eggs. When the potatoes are fully cooked, pour in lightly beaten eggs and stir on low until set for a fast skillet scramble.

How to Store Leftover Potatoes

Store leftovers in an airtight container in the refrigerator for up to three days. Reheat gently in a skillet over low to medium-low heat until warmed through to help preserve texture; reheating in the microwave is also fine for convenience, though the exterior won’t be as crisp.

How to Serve Breakfast Potatoes

These potatoes pair beautifully with eggs and bacon or sausages for a classic breakfast plate. They also work alongside French toast, tucked into a breakfast burrito, or served with a tofu scramble for a vegetarian option. For lunch or dinner, pair them with grilled meats, roasted vegetables, or a simple green salad.

Southwestern Skillet Potatoes with Peppers and Onions

By Christina

Tender diced potatoes sautéed with bell pepper and onion, seasoned simply for a versatile side dish you’ll want to make again and again.

Prep: 10 mins

Cook: 20 mins

Total: 30 mins

Servings: 4 people

Ingredients

• 3 tablespoons olive or avocado oil
• 1½ pounds potatoes, diced, unpeeled
• 1 bell pepper, diced (any color)
• ½ white or yellow onion, diced
• ½ teaspoon salt
• ½ teaspoon black pepper
• ½ teaspoon garlic powder
• ¼ teaspoon paprika

Instructions

1. Heat oil in a large skillet over medium-high heat. When hot, add the diced potatoes, bell pepper, and onion.
2. Sauté, stirring occasionally, for 10–15 minutes until the potato sides are browned. Smaller dice browns faster.
3. Add salt, pepper, garlic powder, and paprika. Stir to combine.
4. Cover, reduce heat to medium or medium-low, and cook 5–10 more minutes until potatoes are tender.
5. Taste and adjust seasoning as desired. Serve warm.

Notes

Yukon Gold potatoes are recommended for their buttery flavor and texture, but other varieties work well. This recipe is easy to double—stir more frequently in a full skillet so pieces on top get a turn at the bottom to brown. If doubling, expect a longer covered cooking time so all pieces become tender. The recipe yields four fairly generous servings; you can serve six with smaller portions.

Nutrition

Calories: 241 kcal, Carbohydrates: 33 g, Protein: 4 g, Fat: 11 g, Saturated Fat: 2 g, Sodium: 303 mg, Fiber: 5 g. Nutrition information is an approximation.