Outback Steakhouse Potato Soup is a creamy and comforting bowl filled with tender potatoes, crispy bacon bits, shredded cheese, and fresh green onions. It’s the kind of soup that feels like a warm hug on a chilly day, with just the right balance of flavors and a smooth, hearty texture that really sticks to your ribs.
I love making this soup when I want something simple yet satisfying because it’s really easy to put together and always hits the spot. Adding the bacon and cheese on top is my favorite part—it gives the soup a little extra pop and a fun mix of textures that everyone enjoys. I like to stir in some sour cream for a bit of tang, which makes it even creamier.
For serving, I usually pair this soup with some crusty bread or crackers to make it a complete meal. It’s perfect for lunch or a cozy dinner, and it always reminds me of those casual nights out where comfort food is the star. If you’re looking for a soup that’s both filling and full of flavor, this one is a reliable go-to.
Key Ingredients & Substitutions
Baking Potatoes: Russet potatoes are best for this soup because they get soft and creamy when cooked. If you can’t find russets, Yukon Golds work well too and bring a buttery flavor.
Bacon: Bacon adds a smoky crunch that balances the creaminess. You can use turkey bacon for a leaner option, though the flavor will be milder.
Cream Cheese & Half-and-Half: They create that rich, velvety texture. For a lighter version, try substituting half-and-half with whole milk and use only a small amount of cream cheese or low-fat cream cheese.
Cheddar Cheese: Sharp cheddar gives a nice tang. If you prefer a milder taste, use mild cheddar, or swap for Monterey Jack for a smoother melt.
Yellow Onion: Sweet and mild, perfect for the base sauté. If you don’t have yellow onions, white or sweet onions are fine alternatives.
How Do You Make a Thick, Creamy Soup Without It Being Too Heavy or Lumpy?
Making this soup creamy depends on a smooth roux and careful mixing:
- Cook the onions in bacon fat: This adds flavor and helps soften the onions evenly without burning.
- Add flour gradually: Stir the flour into the onions and fat, cooking it 1-2 minutes. This cooks off raw flour taste and starts thickening.
- Whisk in broth slowly: This prevents lumps from forming and blends the roux evenly into the liquid.
- Simmer potatoes until tender: Soft potatoes release starch that naturally thickens the soup.
- Mix cream cheese and half-and-half until smooth: Combining these first avoids lumps when added to the hot soup.
- Stir cheese in gently on low heat: High heat can cause cheese to separate or clump, so keep the soup on low and stir often.
Equipment You’ll Need
- Large soup pot – I like using a big pot to cook and combine all the ingredients easily.
- Wooden spoon or spatula – perfect for stirring the roux and preventing sticking.
- Knives and cutting board – essential for peeling and chopping potatoes and onions.
- Measuring cups and spoons – to add ingredients accurately, especially for the broth and cream cheese.
- Soup bowls and ladle – for serving the hot, creamy soup in a nice presentation.
Flavor Variations & Add-Ins
- Steak or sausage pieces – stir in cooked bits for a heartier, meaty twist that adds more flavor.
- Spicy kick – add a dash of cayenne or hot sauce if you like some heat in your soup.
- Extra veggies – stir in cooked broccoli, corn, or sautéed mushrooms for variety and added nutrients.
- Cheese options – swap sharp cheddar for Monterey Jack, Pepper Jack, or smoked gouda for different cheesy flavors.
Outback Steakhouse Potato Soup
Ingredients You’ll Need:
- 6 large baking potatoes, peeled and diced
- 6 slices bacon
- ½ cup yellow onion, finely chopped
- 4 cups chicken broth
- 2 cups half-and-half or heavy cream
- ¼ cup all-purpose flour
- 4 oz cream cheese, softened
- 2 cups shredded sharp cheddar cheese, plus extra for garnish
- Salt and black pepper, to taste
- 2 tablespoons fresh chives, finely chopped (for garnish)
How Much Time Will You Need?
This potato soup recipe takes about 45 minutes from start to finish. You’ll spend around 15 minutes prepping and sautéing, then about 20 minutes simmering until the potatoes are tender, followed by another 10 minutes to melt the cheese and finish the soup. It’s quick enough for a cozy weeknight meal!
Step-by-Step Instructions:
1. Cook the Bacon and Onions
In a large pot, cook the bacon over medium heat until crispy. Once done, remove the bacon, crumble it, and set aside for garnish. Leave about 2 tablespoons of the bacon fat in the pot to cook the onions.
2. Make the Roux with Onions and Flour
Add the finely chopped yellow onion to the bacon fat and sauté for about 3-4 minutes, until the onions are soft and translucent. Sprinkle the flour over the onions and stir well to combine. Cook for another 1-2 minutes to form a smooth roux, which will help thicken the soup.
3. Add Broth and Potatoes
Slowly whisk the chicken broth into the roux to avoid lumps. Add the diced potatoes, increase the heat to bring everything to a boil, then reduce to low and simmer for 15-20 minutes, until the potatoes are soft and tender.
4. Mix Cream Cheese and Half-and-Half
While the potatoes cook, whisk together the softened cream cheese and half-and-half or heavy cream in a separate bowl until smooth and creamy.
5. Add Cream Mixture and Cheese
Stir the cream cheese mixture into the soup pot on low heat. Then add the shredded sharp cheddar cheese little by little, stirring until fully melted and the soup is creamy.
6. Season and Serve
Taste the soup and add salt and freshly ground black pepper as needed. Ladle the soup into bowls, then top each serving with crumbled crispy bacon, extra shredded cheddar cheese, and chopped fresh chives for a beautiful finish. Serve warm and enjoy!
Can I Use Frozen Potatoes Instead of Fresh?
Yes, you can use frozen diced potatoes to save time. Just make sure to thaw them completely before adding to the soup so they cook evenly, and reduce simmering time slightly since they’re already partially cooked.
Can I Make This Soup Ahead of Time?
Absolutely! Prepare the soup fully, then cool and store it in an airtight container in the fridge for up to 3 days. Reheat gently on the stove over low heat, stirring occasionally to keep it smooth and creamy.
What Can I Substitute for Cream Cheese?
If you don’t have cream cheese, you can swap it with sour cream or Greek yogurt for tanginess, though the texture may be slightly different. Add it at the end of cooking and stir gently to avoid curdling.
How Should I Store Leftover Soup?
Store leftover soup in an airtight container in the refrigerator for up to 3 days. Reheat on the stove or in the microwave over medium heat, stirring often to prevent burning or separation.
