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Step 1: Arrange a rack in the middle of the oven and heat the oven to 375ºF. Coat a 9x13-inch or other 3-quart baking dish with butter.
Step 2: Finely grate 6 ounces Pecorino Romano cheese if needed, or measure out 1 1/2 cups store-bought grated. Peel and thinly slice 3 1/2 pounds Yukon Gold potatoes into 1/8-inch-thick rounds. Place the slices in a large bowl. Finely chop 1 large shallot.
Step 3: Melt 2 tablespoons unsalted butter in a small saucepan over medium heat. Add the chopped shallot, season with 1 tablespoon freshly ground black pepper and 2 teaspoons kosher salt, and cook, stirring frequently, until the shallot is soft and translucent, about 3 to 4 minutes.
Step 4: Add 2 cups heavy cream and 1/4 cup water to the saucepan, stir to combine, and bring to a gentle simmer. Remove the pan from the heat. While whisking constantly, add 1 cup of the cheese a few tablespoons at a time and whisk until the sauce is smooth.
Step 5: Transfer the sauce to the bowl of potatoes and toss to coat thoroughly. Arrange half of the potato mixture in the baking dish in an even layer, sprinkle with 1/4 cup of cheese and some black pepper. Arrange the remaining potato mixture on top, pour the remaining sauce evenly over, and sprinkle with the remaining 1/4 cup cheese and more black pepper.
Step 6: Cover the baking dish tightly with aluminum foil and bake until the potatoes are tender, about 45 minutes.
Step 7: Uncover the baking dish, increase the oven temperature to 425ºF, and bake until the top is browned and the sauce has thickened slightly, about 20 to 25 minutes more. Let the gratin cool for 10 minutes before serving; the sauce will thicken as it cools.

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