Outback Steakhouse Potato Soup is a creamy, comforting bowl packed with tender potatoes, crispy bacon bits, and melted cheese that makes every spoonful feel like a warm hug. This soup has that perfect balance of hearty and rich, with a smooth texture and just enough seasoning to keep you coming back for more.
I love making this soup when I want something simple but special. It’s one of those recipes that feels fancy because of the toppings—you can’t go wrong with a little sour cream, green onions, and extra cheese on top. I always keep some bacon in the fridge just for this, and it adds such a tasty crunch that turns the soup into a little celebration.
Serving this with a side of crusty bread or a fresh salad makes it a full meal that’s cozy enough for chilly evenings or anytime you want to treat yourself. I find that it’s a great crowd-pleaser, too—everyone seems to enjoy the rich flavors and smooth, creamy texture. It’s like a warm welcome in a bowl every time.
Key Ingredients & Substitutions
Bacon: Crispy bacon adds smoky flavor and crunch. For a vegetarian option, try smoked paprika or mushroom bacon seasoning instead.
Potatoes: Use starchy potatoes like Russets for a creamy texture. Yukon Golds work too if you want a slightly waxier bite.
Cheddar cheese: Sharp cheddar brings tang and richness. Mild cheddar or a cheese blend works if you prefer a softer cheese flavor.
Sour cream: Adds tang and creaminess. You can swap for plain Greek yogurt for a lighter or tangier option.
Chicken broth: Use low-sodium broth to control saltiness, or vegetable broth for a vegetarian twist.
How Do You Get the Soup Creamy Without It Being Too Thick or Too Thin?
The thickening trick here is the roux (flour cooked with butter) and partially mashing the potatoes.
- Cook butter and flour together for 2 minutes to get rid of raw flour taste and start thickening the broth.
- Whisk in broth slowly so the mixture stays smooth—no lumps.
- After boiling the potatoes until tender, mash about half of them right in the pot. This creates natural thickness with some chunky texture left.
- Finish by gently stirring in cream, sour cream, and cheese without boiling again; this stops curdling and keeps everything smooth.
Taking these steps keeps the soup rich and velvety but still light enough to enjoy spoonful after spoonful.
Equipment You’ll Need
- Large soup pot – I use this because it gives enough space to cook everything evenly and makes stirring easy.
- Sharp knife and cutting board – for chopping onions, garlic, and potatoes quickly and safely.
- Immersion blender or potato masher – helps to mash some potatoes to give the soup a thicker, creamier texture.
- Measuring cups and spoons – keeps your ingredients balanced and the recipe consistent.
- Cooking spoon – perfect for stirring the roux, soup, and toppings smoothly.
Flavor Variations & Add-Ins
- Swap bacon for cooked, crumbled sausage or ham for a different smoky, meaty flavor.
- Stir in sautéed mushrooms or chopped spinach to add some veggies and extra flavor.
- Use Monterey Jack or pepper jack cheese instead of cheddar for a cheesy kick with a little heat.
- Add hot sauce or a pinch of smoked paprika to give the soup a smoky or spicy twist.
Outback Steakhouse Potato Soup
Ingredients You’ll Need:
- 6 slices bacon
- 1/4 cup butter
- 1 small onion, finely chopped
- 3 cloves garlic, minced
- 4 cups peeled and diced potatoes (about 4 medium potatoes)
- 3 cups chicken broth
- 1 cup heavy cream
- 1/2 cup milk
- 1/2 cup sour cream
- 2 cups shredded sharp cheddar cheese, divided
- 3 tablespoons all-purpose flour
- Salt and pepper, to taste
- 2 tablespoons chopped fresh parsley (optional, for garnish)
- Extra shredded cheddar cheese for garnish
- Additional sour cream for garnish
- Ground black pepper for garnish
Time Needed
This recipe will take about 45 minutes from start to finish. You’ll spend around 10 minutes prepping ingredients, 20-25 minutes simmering and cooking the potatoes, plus a few minutes to add the finishing touches and garnishes. It’s a perfect soup to make when you want something warm and comforting but don’t want to spend hours in the kitchen.
Step-by-Step Instructions:
1. Cook the Bacon:
Place the bacon slices in a large pot over medium heat. Cook until they are nice and crispy, then remove them and place on paper towels to drain the grease. When cool, crumble the bacon and set it aside. Keep about a tablespoon of the bacon drippings in the pot for extra flavor.
2. Sauté the Onions and Garlic:
Add the butter to the pot with the bacon drippings and let it melt over medium heat. Stir in the finely chopped onion and cook until it’s soft and translucent, about 4 to 5 minutes. Add the minced garlic and cook for another minute until you can smell its fragrance.
3. Make the Roux and Add Potatoes:
Sprinkle the flour over the cooked onions and garlic, stirring constantly to form a roux. Cook this mixture for about 2 minutes to get rid of the raw flour taste. Slowly whisk in the chicken broth, making sure to avoid lumps. Add the diced potatoes, bring the soup to a boil, then reduce the heat and simmer until the potatoes are tender (about 15–20 minutes).
4. Mash Potatoes and Add Dairy:
Using a potato masher or immersion blender, mash some of the potatoes right in the pot to help thicken the soup. Leave some potato chunks for texture if you like. Stir in the heavy cream, milk, sour cream, and 1½ cups of shredded cheddar cheese. Heat gently until the cheese melts and the soup is creamy—avoid boiling at this stage to keep the texture smooth.
5. Season and Serve:
Taste your soup and season with salt and pepper as needed. Ladle the soup into bowls and top each serving with the remaining shredded cheddar cheese, crumbled bacon, chopped fresh parsley, a dollop of sour cream, and a sprinkle of freshly ground black pepper. Serve hot along with some crusty bread for a perfect meal.
Can I Use Frozen Potatoes for This Soup?
Yes, you can use frozen diced potatoes, but be sure to thaw them completely and drain any excess moisture before adding to the soup. This helps prevent the soup from becoming too watery.
How Can I Make This Soup Vegetarian?
Simply skip the bacon and use vegetable broth instead of chicken broth. For smoky flavor, add smoked paprika or a dash of liquid smoke, and consider topping with crispy fried onions or roasted mushrooms.
Can I Prepare This Soup in Advance?
Absolutely! Make the soup up to 2 days ahead and store it in an airtight container in the fridge. Reheat gently on the stove, stirring occasionally, and add a splash of milk or cream if it’s too thick.
What’s the Best Way to Store Leftovers?
Store leftover soup in an airtight container in the refrigerator for up to 3 days. Reheat over low heat, stirring often, or warm portions in the microwave in short bursts until heated through.
