Outback Steakhouse Potato Soup is creamy, comforting, and packed with chunks of tender potatoes, bits of bacon, shredded cheese, and green onions. This soup feels like a warm hug on a chilly day and makes for a perfect cozy meal that everyone seems to love.
I always enjoy making this soup when I want something easy but super satisfying. I like to let it simmer just long enough for the potatoes to get soft and the flavors to really come together. Adding crispy bacon on top is my favorite part—it gives a nice crunch that balances the creaminess.
Serving this soup with a side of crusty bread or a simple green salad makes it a complete meal for me and my family. It’s also great for casual dinners or when friends come over, because it’s both filling and easy to prepare. I almost always end up making a double batch because everyone asks for seconds!
Key Ingredients & Substitutions
Bacon: Bacon adds a smoky crunch that brings the soup to life. You can swap it for turkey bacon or omit it for a vegetarian version. For extra flavor, try smoked paprika as a substitute.
Russet Potatoes: These are great because they break down nicely and make the soup creamy. Yukon Gold potatoes work well too and hold their shape more if you like chunkier pieces.
Cheddar Cheese: Sharp cheddar gives a rich, cheesy flavor. If you want a milder taste, use mild cheddar, or try Gouda or Monterey Jack instead for a different twist.
Sour Cream and Heavy Cream: These add creaminess and a slight tang. Greek yogurt can replace sour cream for a lighter option, and whole milk or half-and-half can be used instead of heavy cream to reduce fat.
How Do I Get the Soup Creamy Without Losing Chunky Potato Pieces?
The trick is blending only part of the soup.
- Once potatoes are tender, blend half the soup using an immersion blender or regular blender.
- Keep some potato chunks whole to enjoy the texture and heartiness.
- Return blended soup to the pot and stir to combine.
This method gives you a silky broth with bits of soft potatoes, giving the best balance. It’s easier than making a fully smooth soup and keeps that classic texture you want.
Also, add the cheese and cream slowly at the end on low heat to prevent curdling and keep the soup smooth and rich.
Equipment You’ll Need
- Large heavy-bottomed pot or Dutch oven – I like it because it heats evenly and can handle the whole soup.
- Immersion blender or regular blender – for blending part of the soup to make it creamy but still chunky.
- Measuring cups and spoons – to keep everything precise and easy.
- Wooden spoon or spatula – perfect for stirring without scratching the pot.
- Knife and cutting board – for chopping bacon, onions, and potatoes.
Flavor Variations & Add-Ins
- Use cooked diced ham or cooked turkey bacon instead of bacon for a leaner option.
- Add chopped sautéed mushrooms or cooked spinach for extra veggies and flavor.
- Mix in a dash of smoked paprika or cayenne pepper to give the soup a smoky or spicy kick.
- Swirl in a spoonful of cream cheese at the end for extra richness and tang.
Outback Steakhouse Potato Soup
Ingredients You’ll Need:
- 6 slices bacon
- 1/2 cup diced onion
- 2 cloves garlic, minced
- 4 cups peeled and diced russet potatoes
- 3 cups chicken broth
- 1 cup heavy cream
- 1/2 cup sour cream
- 2 cups shredded sharp cheddar cheese, divided
- 1 tsp salt (adjust to taste)
- 1/2 tsp black pepper (adjust to taste)
- 2 tbsp butter
- 2 tbsp all-purpose flour
- 1/4 cup chopped fresh parsley (for garnish)
- Additional sour cream, shredded cheddar, and bacon for garnish
Time Needed
This recipe takes about 45 minutes in total. Plan on 15 minutes for prep and 30 minutes for cooking and simmering the soup until the potatoes are tender and the flavors come together perfectly.
Step-by-Step Instructions:
1. Cook the Bacon and Sauté Vegetables:
In a large pot or Dutch oven, cook the bacon over medium heat until crispy. Remove the bacon and crumble it, saving 1-2 tablespoons of the bacon fat in the pot. Add butter to the bacon fat. Once melted, sauté the diced onion until soft and translucent, about 3-4 minutes. Add the minced garlic and cook for another minute until fragrant.
2. Make the Roux and Add Potatoes:
Sprinkle the flour over the sautéed onions and garlic, stirring continuously to form a roux. Cook for about 2 minutes to remove the raw flour taste. Gradually whisk in the chicken broth to avoid lumps. Add the diced potatoes, salt, and pepper. Bring to a boil, then reduce heat and simmer until the potatoes are tender, about 15-20 minutes.
3. Blend, Add Cream, and Cheese:
Use an immersion blender to blend about half the soup until it’s slightly thickened but still chunky—if you don’t have one, carefully blend half of the soup in a regular blender and return it to the pot. Stir in the heavy cream, sour cream, and 1 1/2 cups of the shredded cheddar cheese. Cook on low heat until the cheese melts and the soup is heated through, about 5 minutes. Taste and adjust seasoning as needed.
4. Serve with Toppings:
Ladle the soup into bowls and top with the crumbled bacon, remaining shredded cheddar cheese, a dollop of sour cream, and a sprinkle of fresh parsley. Serve warm with your favorite bread or crackers on the side.
Equipment You’ll Need
- Large heavy-bottomed pot or Dutch oven
- Immersion blender or regular blender
- Measuring cups and spoons
- Wooden spoon or spatula
- Knife and cutting board
Flavor Variations & Add-Ins
- Swap bacon for turkey bacon or cooked diced ham for a leaner protein.
- Add sautéed mushrooms, cooked spinach, or chopped broccoli for extra veggies.
- Mingle in a pinch of smoked paprika or cayenne pepper to add smoky or spicy notes.
- Stir in a spoonful of cream cheese at the end for extra creaminess and tang.
Can I Use Frozen Potatoes for This Soup?
Yes, you can use frozen diced potatoes. No need to thaw—just add them directly to the pot. Keep in mind they may cook a bit faster, so adjust your simmer time accordingly.
How Should I Store Leftovers?
Store leftover soup 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 breaking the creaminess.
Can I Make This Soup Dairy-Free?
Absolutely! Swap heavy cream and sour cream for full-fat coconut milk or a dairy-free alternative. Use a dairy-free cheese substitute or skip the cheese altogether to keep it creamy.
Is It Possible to Make This Soup Ahead of Time?
Yes! Make the soup a day ahead and refrigerate. When ready to serve, reheat slowly on the stove and add fresh toppings like cheese and bacon just before serving for the best flavor and texture.
