Outback Steakhouse Potato Soup is a creamy, comforting bowl filled with tender potatoes, melted cheese, crispy bacon bits, and fresh green onions. It’s the kind of soup that feels warm and hearty, perfect for chilly days or whenever you’re craving something rich and satisfying. The creamy texture combined with those savory toppings makes each bite really special.
I love making this soup because it’s so simple but tastes like you’re having a treat at your favorite restaurant. I like to add a little extra cheese or a dollop of sour cream on top to give it a personal touch. It’s a cozy recipe that feels like a warm hug in a bowl, and I find it’s great for bringing people together around the dinner table.
One of my favorite ways to enjoy this potato soup is with a side of warm, crusty bread for dipping. It’s a quick and easy meal that’s perfect for busy weeknights or lazy weekends. Every time I make it, I remember the first time I tried it at Outback—it’s that kind of dish that sticks with you and makes you want to come back for more.
Key Ingredients & Substitutions
Russet Potatoes: These are ideal for soups because they get tender and break down nicely, adding creaminess. If you don’t have russets, Yukon Golds work well too for a slightly buttery flavor.
Chicken Broth: It adds depth and warmth to the soup. You can use vegetable broth if you want a vegetarian version. Just keep in mind the flavor will be lighter.
Bacon: Bacon brings a smoky, salty punch. If you want to skip pork, try smoked turkey bacon or add smoked paprika to keep that smoky note.
Cheddar Cheese: Sharp cheddar gives a nice tang and meltiness. Feel free to mix in mild cheddar or Monterey Jack for a smoother taste. If dairy-free, look for plant-based cheese options.
Milk and Cream: These create the soup’s rich, creamy texture. Use whole milk for best results. Half-and-half or heavy cream makes it extra smooth, but you can swap for coconut milk for a dairy-free twist.
How Do You Make the Soup Thick and Creamy Without It Being Lumpy?
The secret is the roux, a simple mix of butter and flour cooked before adding milk. It thickens the soup smoothly without lumps. Here’s my tip:
- Start by melting butter and whisking in the flour on medium heat.
- Keep stirring for 1-2 minutes to cook the flour taste out.
- Slowly add cold milk and half-and-half, whisking constantly.
- Keep whisking until the mixture thickens—this step prevents lumps.
- Add the thickened mixture gradually to the cooked potatoes while stirring.
This way, the soup becomes creamy and smooth without clumps of flour. Also, mashing some potatoes directly in the soup adds natural thickness and texture.

Equipment You’ll Need
- Large Soup Pot – I like using a big pot to cook everything evenly and make stirring easier.
- Medium Saucepan – Perfect for making the roux and heating the milk mixture separately so it doesn’t lump.
- Masher or Immersion Blender – I prefer an immersion blender because it’s quick and easy to blend some potatoes for creaminess while leaving chunks for texture.
- Measuring Cups and Spoons – To keep everything precise and consistent.
- Stirring Utensil – A sturdy spoon or whisk makes stirring smooth and scraping the sides simple.
Flavor Variations & Add-Ins
- Use cooked ham or turkey bacon for a leaner, milder flavor while keeping it hearty.
- Mix in sautéed mushrooms or spinach for extra veggies and earthy flavor.
- Stir in a dash of smoked paprika or cayenne pepper to add a smoky or spicy kick.
- Top with crumbled blue cheese or extra shredded cheese for a different cheesy flair.

Outback Steakhouse Potato Soup
Ingredients You’ll Need:
- 6 cups peeled and cubed russet potatoes
- 4 cups chicken broth
- 1 cup chopped celery
- 1 cup chopped onion
- ½ cup chopped carrot
- 4 tablespoons butter
- ⅓ cup all-purpose flour
- 3 cups milk (whole or 2%)
- 1 cup half-and-half or heavy cream
- 2 cups shredded sharp cheddar cheese
- 1 teaspoon garlic powder
- Salt and pepper to taste
- 1 ½ cups cooked bacon, chopped (reserve some for garnish)
- ¼ cup chopped fresh parsley or green onions (for garnish)
- Sour cream (for garnish)
Time You’ll Need:
This recipe will take about 40 minutes in total. You’ll spend around 20 minutes prepping and cooking the potatoes and veggies, 10 minutes making the creamy roux mixture, and another 10 minutes for assembling and final cooking. It’s simple and quick enough for a weekday dinner!
Easy Step-by-Step Instructions:
1. Cook the Vegetables and Potatoes:
In a large pot, add the peeled and cubed potatoes, chopped celery, onion, carrot, and chicken broth. Bring everything to a boil over medium-high heat. Once boiling, turn the heat down, cover the pot, and let it simmer for about 15 to 20 minutes until the potatoes are soft and tender.
2. Make the Creamy Roux Mixture:
While the potatoes cook, melt the butter in a medium saucepan over medium heat. Stir in the flour and cook it, stirring constantly, for 1 to 2 minutes to make a smooth paste called a roux. Slowly whisk in the milk and half-and-half (or heavy cream), continuing to whisk until the mixture thickens and becomes smooth, about 5 minutes. Then remove from the heat.
3. Combine and Finish the Soup:
Once your potatoes are tender, use a potato masher or an immersion blender to mash some of the potatoes right in the pot, but leave some chunks for a nice texture. Slowly pour the creamy milk mixture into the pot and stir everything well. Add the shredded cheddar cheese, garlic powder, and chopped bacon. Let the soup simmer gently until the cheese melts and the soup is hot all the way through. Season with salt and pepper to taste.
4. Serve and Garnish:
Ladle the soup into bowls. Top each serving with extra shredded cheddar cheese, crispy bacon bits, a spoonful of sour cream, and a sprinkle of fresh parsley or green onions. Serve your delicious Outback-style potato soup with crusty bread or crackers for a warm, comforting meal.
Can I Use Frozen Potatoes for This Soup?
Yes, you can use frozen cubed potatoes to save time! Just make sure to thaw them completely and drain any excess water before cooking to avoid a watery soup.
How Can I Make This Soup Vegetarian?
Simply swap the chicken broth for vegetable broth and skip the bacon or use vegetarian bacon substitutes. You can also add smoked paprika for a smoky flavor without the meat.
Can I Prepare This Soup Ahead of Time?
Absolutely! Make the soup completely, then cool and store it in an airtight container in the fridge for up to 3 days. Reheat gently on the stove, stirring occasionally.
How Do I Thicken the Soup If It’s Too Thin?
If your soup is thinner than you like, mix a tablespoon of flour or cornstarch with a little cold water and stir it into the simmering soup. Cook for a few more minutes until it thickens up nicely.



