Preheat oven to 350℉.
Grease baking dish and set aside.
Peel potatoes and slice thinly. Place potato slices in a bowl and cover with water while you cook the mushrooms and make the cheese sauce.
Melt 2 tablespoons butter in a large skillet over medium heat.
Add sliced mushrooms and sauté until mushrooms release all their moisture and liquid cooks off.
Remove mushrooms from the pan and keep warm.
Add remaining 5 tablespoons butter to the pan. When butter has melted add 5 tablespoons flour to the pan. Stir until well combined making a roux.
Add cream to the skillet and whisk together with the roux. Bring sauce to a simmer. Cook until sauce thickens, about 2-3 minutes.
Reduce heat to low and stir in salt, minced rosemary, paprika and Gruyère cheese. Stir until combined and cheese is melted. Remove pan from heat.
Drain potatoes and place them in an even layer in the bottom of prepared casserole dish.
Top with an even layer of sautéed mushrooms.
Pour cream sauce over the mushrooms and potatoes.
Top with grated Monterey Jack cheese.
Cover casserole dish with foil and bake for 60 minutes.
Remove foil and bake for another 30 minutes or until potatoes are soft.
Turn on broiler and cook until cheese is lightly browned and bubbly.
Allow casserole to sit for 10 minutes before serving.