Set your oven temperature to 350 degrees Fahrenheit.
Lightly grease a 9" x 13" baking dish with nonstick spray.
In a medium skillet over medium heat, melt the butter then add the diced onions. Cook them until they start to turn golden and caramelized, about 5 minutes.
Transfer the cooked onions to a large bowl and add the frozen shredded potatoes, cream of mushroom soup, sour cream, 1½ cups of the shredded cheese, garlic salt, and chicken broth. Mix everything thoroughly until combined.
Pour the potato mixture evenly into the prepared casserole dish. Sprinkle the remaining ½ cup of shredded cheese on top.
Place the baking dish in the oven and bake uncovered for 30 to 40 minutes until the edges are bubbling and the top turns a light golden brown.
Remove from the oven and serve warm for a delicious cheesy potato bake everyone will enjoy!