Outback Steakhouse Potato Soup is a creamy, hearty, and comforting dish that’s packed with tender potatoes, crispy bacon, and a blend of cheese that melts perfectly into the broth. It has that rich, velvety texture with just a bit of a smoky bite from the bacon, making it perfect for chilly days or when you’re craving something cozy and satisfying.
I love making this soup whenever I want a warm hug in a bowl. The best part for me is topping it with extra cheese and green onions—it adds that fresh zing that balances out the creamy base. If you’ve ever enjoyed this soup at the restaurant, you’ll be thrilled to know how easy it is to whip up at home with just a few simple ingredients.
My favorite way to serve it is with crusty bread on the side, so I can soak up every last bit of the soup. It’s also great as a starter when you’re having a big family dinner. Everyone always asks for seconds because it’s just that good. This soup is perfect for those moments when you want to feel cared for and cozy without spending hours in the kitchen.
Key Ingredients & Substitutions
Bacon: Bacon adds smoky crunch to the soup. If you prefer a leaner version, use turkey bacon or smoked ham. For a vegetarian option, skip the bacon and add smoked paprika for some smoky flavor.
Potatoes: Russet or Yukon Gold potatoes work best here for their texture. Yukon Golds are creamier and hold shape well, making the soup perfectly thick without getting gluey.
Cheddar Cheese: Sharp cheddar gives great flavor and meltability. You can swap with Monterey Jack or Colby for a milder taste, or add a little Parmesan for extra depth.
Half-and-Half or Heavy Cream: Half-and-half balances creaminess without feeling too heavy. For a lighter version, use whole milk, but the soup will be less rich.
How Do You Get the Perfect Creamy Soup Texture?
The key to creamy but not too thick potato soup is combining mashed and chunky potatoes. Here’s how:
- Cook potatoes until very tender, then mash some directly in the pot to thicken.
- Leave some potato pieces whole to keep a nice texture.
- Use low heat when stirring in cream and cheese to avoid curdling or separating.
Adding flour to the sautéed onion forms a roux, which helps thicken the soup evenly. Whisk in the broth gradually to avoid lumps and keep the soup smooth. Take your time and stir gently for the best results!
Equipment You’ll Need
- Large heavy-bottomed pot – I prefer this because it heats evenly and keeps the soup from scorching.
- Wooden spoon or silicone spatula – makes stirring and scraping the pot easy without scratching.
- Slotted spoon – perfect for removing crispy bacon bits without excess grease.
- Immersion blender or potato masher – helps to mash some potatoes for a creamy texture while leaving chunks for texture.
- Grater (optional for cheese) – if shredding your own cheese, a box grater is quick and easy.
Flavor Variations & Add-Ins
- Use cooked, crumbled sausage instead of bacon for extra protein.
- Boost flavor with a teaspoon of smoked paprika or cayenne pepper for a smoky kick or heat.
- Add sautéed mushrooms or chopped spinach for extra veggies and earthy flavor.
- Swirl in a little sour cream or cream cheese at the end for extra richness and tang.
Outback Steakhouse Potato Soup
Ingredients You’ll Need:
- 6 slices of bacon, diced
- 1/2 cup diced onion
- 1/3 cup all-purpose flour
- 5 cups chicken broth
- 3 cups peeled and diced potatoes (about 2 medium potatoes)
- 3 cups shredded cheddar cheese, divided
- 1 1/2 cups half-and-half or heavy cream
- Salt and freshly ground black pepper, to taste
- 1/4 cup chopped green onions for garnish
How Much Time Will You Need?
This soup takes about 10 minutes to prep and around 30 minutes to cook. So, give yourself about 40 minutes total to create this creamy, comforting dish ready to enjoy.
Step-by-Step Instructions:
1. Cook the Bacon and Onions
In a large pot over medium heat, cook the diced bacon until it’s crisp. Use a slotted spoon to remove the bacon and set it aside. Leave the bacon drippings in the pot, then add the diced onions. Sauté them until they become translucent and soft, about 5 minutes.
2. Make the Roux and Add Broth
Sprinkle the flour over the onions and stir well to combine. Cook for 1-2 minutes to get rid of the raw flour taste. Slowly whisk in the chicken broth, stirring to avoid lumps, and bring the mixture to a boil.
3. Cook and Mash the Potatoes
Add the diced potatoes to the pot, reduce the heat to low, and let simmer uncovered until the potatoes are tender—about 15-20 minutes. Then, use a potato masher or an immersion blender to mash some of the potatoes right in the pot. This will thicken the soup while leaving plenty of potato chunks for texture.
4. Add Cheese and Cream
Stir in 2 1/2 cups of shredded cheddar cheese and let it melt completely. Slowly pour in the half-and-half or heavy cream, stirring gently. Keep the heat low and warm the soup without letting it boil.
5. Season and Serve
Season your soup with salt and freshly ground black pepper to taste. Ladle the soup into bowls and top with the remaining cheddar cheese, crispy bacon bits, and chopped green onions. Serve with fresh bread or crackers if you like.
Can I Use Frozen Potatoes for This Soup?
Yes, frozen diced potatoes work well and save prep time! Just add them straight to the pot without thawing and simmer a bit longer until tender.
How Should I Store Leftover Potato Soup?
Store leftovers in an airtight container in the fridge for up to 3 days. Reheat gently on the stove over low heat, stirring occasionally to prevent sticking or curdling.
Can I Make This Soup Dairy-Free?
Absolutely! Substitute the half-and-half with coconut milk or a dairy-free creamer, and use a dairy-free cheese alternative. The bacon flavor will still carry the soup well.
Is It Possible to Prepare This Soup in Advance?
Yes, you can cook the soup up to the step before adding cream and cheese, then refrigerate for up to 2 days. When ready to serve, reheat gently and stir in cheese and cream at the end for best texture.
