If you assemble it ahead, the potatoes will probably color a little from oxidation. As Leslie said, make sure to cover it tightly to minimize this. I might add the milk ahead, which will help the potatoes on the bottom stay white. Since you'll get some browning on the top anyway, it matters less if those potatoes get a little discolored.
Yes you can! Just keep it in the refrigerator after you assemble it. You may even wait to do the last step of pouring the milk over it just before baking and keep them separately, but it should work either way!
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