How to Make the Best Outback Potato Soup Recipe at Home

There are few things more comforting than a warm, creamy bowl of potato soup on a chilly evening. If you have ever visited an Outback Steakhouse and found yourself completely mesmerized by their rich, indulgent baked potato soup, you already know exactly what kind of experience we are talking about. That thick, velvety base loaded with tender potato chunks, sharp cheddar cheese, crispy bacon, and a dollop of sour cream is the kind of dish that makes you close your eyes and just savor every single spoonful.

The good news is that you do not need to make a restaurant reservation to enjoy this incredible soup. With a handful of simple, everyday ingredients and about an hour of your time, you can recreate this beloved classic right in your own kitchen. This copycat Outback potato soup recipe is so close to the original that your family and friends will be absolutely convinced you ordered takeout. Whether you are making it for a weeknight dinner, a cozy weekend lunch, or a crowd-pleasing appetizer at your next gathering, this recipe never fails to impress.

What makes this soup truly special is the layering of flavors. The foundation starts with a buttery, garlicky base, builds into a creamy potato-loaded broth, and finishes with toppings that add texture, saltiness, and freshness all at once. We have tested this recipe multiple times to get the ratios just right, and the result is nothing short of spectacular. Keep reading to discover everything you need to know to make this showstopping soup from scratch.

The Outback Potato Soup Recipe

✨ Recipe Card

Outback Potato Soup Recipe

A velvety, rich potato chowder loaded with tender russet chunks, smoky crispy bacon crumbles, sharp melted cheddar, and a warmly spiced cream broth that tastes like it came straight from the restaurant kitchen.

⏱ Prep

15 mins

🍳 Cook

35 mins

⏰ Total

50 mins

🍽 Serves

6 servings

🥘 Ingredients

  • 6 slices thick-cut bacon, chopped
  • 1 medium yellow onion, finely diced
  • 3 cloves garlic, minced
  • 4 tablespoons unsalted butter
  • 1/3 cup all-purpose flour
  • 4 cups chicken broth, low-sodium
  • 2 cups whole milk
  • 1 cup heavy cream
  • 2 lbs russet potatoes, peeled and cubed into 3/4-inch pieces
  • 1 teaspoon smoked paprika
  • 1/2 teaspoon onion powder
  • 1/2 teaspoon garlic powder
  • 1/2 teaspoon freshly cracked black pepper
  • 1 teaspoon kosher salt, plus more to taste
  • 1.5 cups shredded sharp cheddar cheese, divided
  • 1/2 cup sour cream
  • 3 tablespoons fresh chives, thinly sliced, for garnish

📋 Instructions

  • 1. Render chopped bacon in a large heavy-bottomed Dutch oven over medium heat until deeply crispy and mahogany-brown, about 7–8 minutes; transfer to a paper-towel-lined plate and reserve 2 tablespoons of drippings in the pot.
  • 2. Sauté diced onion in the reserved bacon drippings over medium heat for 4–5 minutes until softened and translucent, then add minced garlic and cook 60 seconds more until fragrant.
  • 3. Add butter to the pot and allow it to melt fully, then sprinkle flour over the onion mixture and whisk continuously for 2 minutes to cook out the raw flour taste and form a pale roux.
  • 4. Stream in chicken broth gradually while whisking constantly to prevent lumps, then pour in whole milk and heavy cream, bringing the mixture to a gentle simmer.
  • 5. Add cubed russet potatoes, smoked paprika, onion powder, garlic powder, black pepper, and kosher salt; stir to combine and simmer uncovered for 18–22 minutes until potatoes are completely fork-tender.
  • 6. Use a potato masher to lightly crush roughly one-quarter of the potatoes directly in the pot to thicken the broth while keeping the soup chunky.
  • 7. Reduce heat to low, stir in 1 cup of shredded sharp cheddar and the sour cream until fully melted and silky-smooth; taste and adjust seasoning.
  • 8. Ladle soup into bowls and top generously with remaining cheddar, crispy bacon crumbles, and fresh chives; serve immediately with warm crusty bread.

💡 Tips & Notes

  • • Do not boil the soup after adding the dairy — a gentle simmer prevents curdling and keeps the broth silky.
  • • For extra depth, swap 1 cup of chicken broth for 1 cup of chicken stock concentrate diluted slightly less than directed.
  • • Yukon Gold potatoes can substitute for russets and will produce a naturally creamier, butterier texture without additional mashing.
  • • Leftovers thicken considerably when chilled — thin with a splash of milk or broth when reheating over low heat.
  • • For a smokier flavor profile, use smoked cheddar in place of half the sharp cheddar.

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Why This Copycat Recipe Tastes Like the Real Thing

The secret behind Outback Steakhouse’s potato soup lies in a few key techniques that home cooks often overlook. First, using russet potatoes rather than waxy potatoes gives the soup that signature thick and starchy texture. Russets break down slightly during cooking, which naturally thickens the broth without requiring excessive amounts of cream or flour. Second, the soup builds its depth of flavor through slow cooking the aromatics in butter before adding any liquid. This step is crucial and should never be rushed.

Another critical element is the quality of cheese you use. Freshly shredded sharp cheddar melts far more smoothly than pre-shredded cheese, which often contains anti-caking agents that can make your soup grainy. Taking the extra two minutes to shred your own cheese makes a noticeable difference in the final texture. Finally, the garnishes are not just decorative. The combination of crunchy bacon, green onions, and cool sour cream creates a contrast against the hot, creamy soup that mirrors exactly what makes the restaurant version so irresistible.

For more tips on getting restaurant-quality results at home, KitchenGuide101.com is a fantastic resource packed with technique guides and cooking tutorials that can elevate your everyday meals to a whole new level.

Ingredients You Will Need

  • 6 large russet potatoes, peeled and diced into 1-inch cubes
  • 6 slices thick-cut bacon, chopped
  • 1 medium yellow onion, finely diced
  • 4 cloves garlic, minced
  • 4 tablespoons unsalted butter
  • 3 tablespoons all-purpose flour
  • 4 cups chicken broth or stock
  • 2 cups whole milk
  • 1 cup heavy cream
  • 1 and a half cups freshly shredded sharp cheddar cheese, plus more for topping
  • 1 cup sour cream, divided
  • 1 teaspoon salt, or to taste
  • half teaspoon black pepper
  • half teaspoon smoked paprika
  • quarter teaspoon cayenne pepper, optional
  • 4 green onions, thinly sliced for garnish

Step-by-Step Cooking Instructions

Start by placing your chopped bacon in a large heavy-bottomed pot or Dutch oven over medium heat. Cook the bacon until it is perfectly crispy, stirring occasionally, which should take about eight to ten minutes. Use a slotted spoon to transfer the cooked bacon to a paper towel-lined plate and set it aside for topping. Leave about two tablespoons of the rendered bacon fat in the pot because this adds incredible depth of flavor to the soup base.

Add the butter to the pot along with the diced onion and cook over medium heat, stirring frequently, until the onion becomes soft and translucent, about five minutes. Add the minced garlic and cook for another minute until fragrant. Sprinkle the flour over the onion and garlic mixture and stir well to coat everything evenly. Cook this mixture for two minutes to eliminate the raw flour taste, stirring constantly to prevent burning.

Slowly pour in the chicken broth while whisking to prevent any lumps from forming. Add the diced potatoes, salt, pepper, smoked paprika, and cayenne if using. Bring the mixture to a boil, then reduce the heat to a simmer. Cover the pot and cook for about fifteen to twenty minutes, or until the potatoes are completely fork-tender and beginning to break apart slightly at the edges.

At this point, you have a choice depending on your preferred texture. For a chunkier soup with visible potato pieces, use a potato masher to gently mash about a third of the potatoes directly in the pot. For a smoother, creamier texture, you can use an immersion blender to blend a portion of the soup. Once you have reached your desired consistency, stir in the whole milk and heavy cream. Allow the soup to heat through over medium-low heat without bringing it to a full boil, which can cause the dairy to separate.

Reduce the heat to low and stir in the shredded cheddar cheese one handful at a time, allowing each addition to fully melt before adding more. Once all the cheese is incorporated, stir in half of the sour cream to add a subtle tanginess and extra creaminess. Taste the soup and adjust seasoning with additional salt and pepper as needed. Your soup is now ready to serve.

Serving Suggestions and Topping Ideas

Presentation matters just as much as flavor when it comes to this soup, and thankfully the toppings are both beautiful and delicious. Ladle the hot soup into warmed bowls and immediately add a generous sprinkle of shredded cheddar cheese so it melts slightly into the surface. Add a spoonful of the reserved sour cream right in the center, followed by a handful of the crispy bacon crumbles and a generous scattering of sliced green onions.

If you want to take things even further, consider serving this soup in a bread bowl for an extra indulgent experience. A large sourdough round or a hollow crusty bread loaf makes a fantastic edible vessel that absorbs the creamy broth beautifully. You can also serve it alongside a simple green salad or a plate of warm, crusty garlic bread to round out the meal.

  • Shredded sharp cheddar cheese
  • Crispy bacon crumbles
  • A dollop of sour cream
  • Sliced green onions or chives
  • A pinch of smoked paprika for color
  • Diced jalapeños for heat lovers
  • Bread bowl for full restaurant-style presentation

Storage and Make-Ahead Tips

This soup stores beautifully and actually tastes even better the next day once all the flavors have had time to meld together. Allow the soup to cool to room temperature before transferring it to airtight containers. It will keep in the refrigerator for up to four days. When reheating, do so over low heat on the stovetop, adding a small splash of milk or broth to loosen it up since it will thicken considerably as it sits.

For longer storage, this soup can be frozen for up to three months. However, keep in mind that cream-based soups can sometimes develop a slightly grainy texture after freezing and thawing. To minimize this, reheat the soup slowly over low heat and whisk it vigorously as it warms up. You can also stir in a small amount of fresh cream during reheating to restore its silky consistency. If you are planning to make this soup ahead for a party or event, consider making it the day before and simply reheating it fresh toppings just before serving.

This Outback potato soup recipe is truly one of those dishes that earns a permanent spot in your regular dinner rotation. It is deeply satisfying, endlessly customizable, and surprisingly simple to put together with ingredients you likely already have on hand. Whether you are feeding a hungry family on a weeknight or impressing guests at a dinner party, this creamy, cheesy, bacon-loaded soup delivers every single time. Make a big pot this weekend and prepare to receive nothing but rave reviews from everyone lucky enough to get a bowl.

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