Outback Steakhouse Potato Soup Recipe tastes rich, creamy, cheesy, and loaded with tender potatoes and smoky bacon, just like the restaurant version. It works perfectly for busy families, game day, or cozy nights, and you can get it on the table in about 45 minutes. I first reverse-engineered this copycat in my tiny apartment kitchen while my smoke alarm judged my bacon skills.

Why Make This Outback Steakhouse Potato Soup Recipe at Home

You control the salt, the toppings, and the portion size, which helps a lot when everyone fights over the last bowl. You also skip the wait, the drive, and the check, while still getting that thick, cheesy, bacon-topped comfort in your own kitchen.

You also adjust the texture to your taste, from chunky to silky. Plus, leftovers taste even better the next day, so you cook once and eat twice.

This Outback Steakhouse Potato Soup Recipe tastes thick, cheesy, and restaurant-level comforting, and my family requests it weekly. ★★★★★

Ingredients You Need

Here is everything you need to make this Outback Steakhouse Potato Soup Recipe at home.

Potatoes and vegetables

6 medium russet potatoes, peeled and diced into 1/2 inch cubes
- Russets give that classic fluffy, creamy texture. Yukon Golds also work and taste a bit buttery.
1 medium yellow onion, finely diced
2 ribs celery, finely diced
2 cloves garlic, minced
2 green onions, thinly sliced, for topping

Bacon, dairy, and cheese

6 slices thick-cut bacon, chopped
- Use your favorite brand; applewood smoked bacon adds great flavor.
4 tablespoons unsalted butter
1/3 cup all-purpose flour
3 cups low sodium chicken broth
- Boxed broth works great; choose low sodium so the bacon and cheese do not push the salt too high.
2 cups whole milk
1 cup heavy cream
- You can swap half-and-half for the milk and cream combo in a pinch.
2 cups shredded sharp cheddar cheese, plus extra for topping
- Pre-shredded cheese saves time, but fresh shredded melts smoother.
1/2 cup sour cream
Salt and black pepper, to taste

Optional seasoning boosters

1/2 teaspoon smoked paprika
1/2 teaspoon garlic powder
1/4 teaspoon onion powder

These seasonings help if your broth tastes a little flat.

Toppings

Extra shredded cheddar cheese
Cooked bacon bits
Sliced green onions
A small spoonful of sour cream

Equipment list

Large heavy-bottomed pot or Dutch oven
Cutting board and sharp knife
Wooden spoon or heatproof spatula
Ladle
Potato masher or immersion blender (optional, for texture)
Measuring cups and spoons

Tips & Mistakes

Cut the potatoes into even cubes so they cook at the same rate and keep a consistent texture.
Sauté the onion and celery in bacon fat plus butter so the soup builds flavor from the start.
Do not rush the roux; cook the flour in the butter for at least 1 to 2 minutes so the soup does not taste chalky.
Add the broth and milk slowly while you whisk so the mixture stays smooth and lump free.
Keep the heat at medium or medium low after you add dairy so the soup does not scorch on the bottom.
Stir often, especially near the end, because thick soups like this Outback Steakhouse Potato Soup Recipe like to stick.
Season near the end, after the cheese and bacon go in, since both add salt.
Do not boil hard after you add cheese; gentle heat keeps the soup creamy and prevents grainy texture.
Taste the potatoes before you stop cooking; they should feel tender but not mushy.
Cool leftovers in shallow containers so they chill quickly and keep a good texture.

How to Make Outback Steakhouse Potato Soup Recipe

Step 1: Prep ingredients

Peel and dice the potatoes into 1/2 inch cubes. Dice the onion and celery, mince the garlic, and slice the green onions. Chop the bacon into small pieces so it crisps faster and sprinkles nicely on top.

Step 2: Cook the bacon

Place the chopped bacon in a large cold pot. Turn the heat to medium and cook, stirring often, until the bacon turns crispy and brown. Use a slotted spoon to transfer the bacon to a paper towel lined plate, and leave about 3 tablespoons of bacon fat in the pot.

Step 3: Sauté vegetables

Add the butter to the pot with the bacon fat and let it melt. Stir in the diced onion and celery and cook over medium heat until they soften and turn translucent, about 5 to 7 minutes. Add the minced garlic and cook 30 seconds, just until it smells fragrant.

Step 4: Make the roux

Sprinkle the flour over the vegetables and stir well so the flour coats everything. Cook this mixture for 1 to 2 minutes, stirring constantly, so the flour cooks and turns lightly golden. This step thickens the Outback Steakhouse Potato Soup Recipe and keeps it velvety.

Step 5: Add liquids and potatoes

Slowly pour in the chicken broth while you whisk, breaking up any lumps. Add the milk and heavy cream, still stirring, until the mixture looks smooth. Add the diced potatoes, smoked paprika, garlic powder, onion powder, and a small pinch of salt and pepper.

Step 6: Simmer until tender

Bring the soup up to a gentle simmer over medium heat. Reduce the heat to medium low and cook for 20 to 25 minutes, stirring often, until the potatoes feel fork tender. If the soup thickens too much, stir in a splash of extra broth or milk.

Step 7: Adjust texture

Decide how you like your Outback Steakhouse Potato Soup Recipe. For a chunkier soup, lightly mash some of the potatoes right in the pot with a potato masher. For a smoother soup, blend part of it with an immersion blender, then stir it back together.

Step 8: Add cheese, sour cream, and bacon

Turn the heat to low. Stir in the shredded cheddar cheese a handful at a time until it melts and the soup turns thick and cheesy. Add the sour cream and most of the cooked bacon, then taste and adjust salt and pepper.

Step 9: Serve

Ladle the soup into bowls. Top with extra cheese, remaining bacon, and sliced green onions. Serve hot and watch it disappear faster than you expected.

Variations I've Tried

I swap half the russet potatoes for cauliflower florets when I want a slightly lighter bowl, and the texture still feels rich. I also tried a version with diced ham instead of bacon when I had leftovers from a holiday, and it tasted fantastic. Sometimes I stir in a cup of steamed broccoli florets and a little extra cheddar for a loaded baked potato meets broccoli cheddar situation.

I also tested a slow cooker version by building the roux on the stove, then adding everything except cheese and sour cream to the slow cooker and cooking on low for 6 to 7 hours. At the end I stirred in the cheese and sour cream and it tasted very close to the stovetop version. When I feel spicy, I add a pinch of cayenne or a few dashes of hot sauce to my own bowl.

How to Serve Outback Steakhouse Potato Soup Recipe

Serve this Outback Steakhouse Potato Soup Recipe in warm bowls with a big handful of cheddar, crispy bacon bits, and plenty of green onions on top. Add a side of crusty bread, garlic toast, or simple dinner rolls so everyone can scoop up every last bit. A crisp green salad or steamed veggies balance the richness and round out the meal.

Kids love this soup with grilled cheese or simple buttered toast. I also like to set up a topping bar with cheese, bacon, sour cream, chives, and even crushed crackers so everyone customizes their own bowl.

How to store

Cool the soup to room temperature within 1 to 2 hours, then store it in airtight containers in the fridge for up to 3 to 4 days.
Reheat gently on the stove over low to medium heat, stirring often, and add a splash of milk or broth if it thickens too much.
Freeze portions in freezer safe containers or bags for up to 2 months, leaving a little space at the top for expansion.
Thaw frozen soup overnight in the fridge, then reheat on the stove; stir well to bring the creamy texture back together.