Preheat oven to 400°F and butter a 1.5-quart baking dish.
In a saucepan over medium heat, melt 1 tablespoon of butter.
Whisk in flour and cook for 1 minute, stirring constantly.
Slowly whisk in milk and cream until smooth.
Add salt, white pepper, garlic powder, onion powder, paprika, and cayenne.
Bring mixture to a low simmer until thickened, about 3–5 minutes.
Remove from heat and stir in cheddar and Monterey Jack cheese until melted.
Arrange half of the sliced potatoes in the baking dish. Pour half of the cheese sauce over.
Repeat with remaining potatoes and cheese sauce. Top with Parmesan.
Cover with foil and bake for 45 minutes. Uncover and bake another 15–20 minutes until golden and bubbly.
Let rest for 10 minutes before serving.