Set your oven to 350 degrees Fahrenheit to preheat.
Lightly coat a 9" x 13" baking dish with nonstick cooking spray.
Place the butter in a medium skillet over medium heat until melted, then add the diced onion and cook, stirring often, until it softens and begins to caramelize, about 5 minutes. Remove from heat.
In a spacious mixing bowl, combine the frozen shredded potatoes, cream of mushroom soup, sour cream, 1 1/2 cups of shredded cheese, the cooked onions, garlic salt, and chicken broth. Stir well to incorporate everything evenly.
Transfer the potato mixture into the prepared baking dish, spreading it out evenly.
Sprinkle the remaining 1/2 cup of shredded cheese evenly across the top of the casserole.
Bake the dish uncovered for 30 to 40 minutes until the edges are bubbling and the top is lightly browned.
Remove from the oven and serve warm. Enjoy your comforting cheesy potato bake!