Outback Steakhouse Potato Soup Recipe tastes like a hug in a bowl, with velvety potatoes, smoky bacon, and a rich, cheesy finish that feels like restaurant comfort at home. It works perfectly for busy weeknights or cozy weekends, and you can get it on the table in about 45 minutes. I used to order this soup every single time at Outback, so I finally reverse-engineered it in my tiny apartment kitchen and never looked back.

Why You Should Try This Outback Steakhouse Potato Soup Recipe

This Outback Steakhouse Potato Soup Recipe gives you that thick, creamy, loaded-potato flavor without a restaurant bill or a long wait. You control the salt, the toppings, and the portion size, which helps if you cook for picky eaters or a hungry crowd.

The soup uses simple ingredients that you probably already keep in your pantry and fridge, and it reheats beautifully for lunches. It tastes like a loaded baked potato met a chowder and decided to become your new favorite comfort meal.

“This Outback Steakhouse Potato Soup Recipe tastes just like the restaurant version, maybe better, and my family licks their bowls clean every time. ★★★★★”

Ingredients You’ll Need

Main ingredients

6 slices thick-cut bacon, chopped
- Use good-quality bacon since it flavors the whole pot. Pre-cooked bacon bits work in a pinch, but fresh bacon gives better flavor.
4 tablespoons unsalted butter
1 medium yellow onion, finely diced
2 cloves garlic, minced
1/4 cup all-purpose flour
4 cups low-sodium chicken broth
- Use low-sodium so you can adjust salt at the end. Vegetable broth works if you want a meatless base and skip the bacon.
2 cups whole milk
1 cup heavy cream
- You can swap the cream with half-and-half for a lighter version, but the texture turns slightly thinner.
2 pounds russet potatoes, peeled and cut into 1/2-inch cubes
- Yukon gold potatoes also work and give a slightly buttery taste and creamier texture.
1 teaspoon kosher salt, plus more to taste
1/2 teaspoon freshly ground black pepper
1/2 teaspoon smoked paprika
1/4 teaspoon garlic powder
1/4 teaspoon onion powder

Cheesy, loaded flavor

1 1/2 cups shredded sharp cheddar cheese, divided
- Shred your own cheese if possible, since bagged shreds contain anti-caking agents that can make the soup grainy.
1/3 cup sour cream
- Greek yogurt works as a substitute if you want extra protein and a bit more tang.

Toppings

Extra shredded cheddar cheese
Cooked bacon bits (from above)
3 green onions, thinly sliced
Extra sour cream or Greek yogurt
Fresh chives, minced (optional)

Pantry shortcuts and notes

Use frozen diced potatoes or hash browns if you feel short on time; add them straight from the freezer and adjust cooking time slightly.
Use bouillon paste or cubes with water if you run out of chicken broth; taste and adjust salt carefully.
Use pre-chopped onions from the produce section to save time on prep.

Equipment list

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

Tips & Tricks

Cook the bacon slowly over medium heat so it turns crisp and renders plenty of flavorful fat.
Leave a tablespoon of bacon fat in the pot and drain the rest so the soup tastes rich but not greasy.
Dice the potatoes into even, small cubes so they cook at the same rate and soften quickly.
Warm the milk and cream slightly in the microwave so they blend into the soup without curdling.
Stir the flour into the butter and onion mixture and cook it for at least 1 minute so the soup loses any raw flour taste.
Add the cheese off the heat and stir gently so it melts smoothly and does not clump.
Taste at the end and adjust salt, since bacon, broth, and cheese all contain salt.
Keep the soup at a gentle simmer, not a hard boil, so the dairy stays smooth and the potatoes hold their shape.
Mash a portion of the potatoes in the pot for a thicker texture, or blend briefly with an immersion blender while you leave some chunks.
Add toppings at the table so everyone customizes their own bowl with cheese, bacon, and green onions.

How to Make Outback Steakhouse Potato Soup Recipe

Step 1: Cook the bacon

Place the chopped bacon in a large cold pot.
Turn the heat to medium and cook, stirring occasionally, until the bacon turns crisp and browned, about 8 to 10 minutes.
Use a slotted spoon to transfer the bacon to a paper towel lined plate.
Leave about 1 tablespoon of bacon fat in the pot and discard the rest.

Step 2: Sauté the aromatics

Add the butter to the pot with the bacon fat and let it melt over medium heat.
Stir in the diced onion and cook until it turns soft and translucent, about 4 to 5 minutes.
Add the minced garlic and cook 30 seconds, stirring, so it smells fragrant but does not burn.

Step 3: Make the roux

Sprinkle the flour over the onion and garlic mixture.
Stir constantly for 1 to 2 minutes until the flour coats the onions and turns slightly golden.
Pour in about 1 cup of chicken broth while you whisk or stir vigorously to remove any lumps.
Add the remaining broth slowly while you keep stirring so the base stays smooth.

Step 4: Add potatoes and seasonings

Stir in the cubed potatoes.
Add salt, pepper, smoked paprika, garlic powder, and onion powder.
Bring the mixture to a gentle boil over medium-high heat, then lower the heat to maintain a steady simmer.
Cover the pot partially and cook 15 to 20 minutes, stirring occasionally, until the potatoes turn very tender when pierced with a fork.

Step 5: Add dairy and adjust texture

Reduce the heat to low.
Stir in the milk and heavy cream and mix until the soup looks creamy and uniform.
Use a potato masher to mash some of the potatoes right in the pot if you want a thicker, creamier texture while you keep some chunks.
If you prefer a smoother soup, blend a portion with an immersion blender, then stir it back in.

Step 6: Add cheese and sour cream

Turn the heat to the lowest setting and let the soup stay just below a simmer.
Stir in 1 cup of shredded cheddar cheese a handful at a time until it melts completely.
Add the sour cream and stir until it blends in and the soup looks silky.
Taste and adjust seasoning with more salt and pepper if needed.

Step 7: Serve and load it up

Ladle the Outback Steakhouse Potato Soup Recipe into bowls.
Top each bowl with extra shredded cheddar, crispy bacon bits, and sliced green onions.
Add a small spoonful of sour cream or Greek yogurt and a sprinkle of chives if you like a loaded baked potato vibe.
Serve hot and watch it disappear faster than the bread at a steakhouse table.

What to Serve with Outback Steakhouse Potato Soup Recipe

Serve this Outback Steakhouse Potato Soup Recipe with warm crusty bread, garlic toast, or soft dinner rolls so you can scoop up every last bit. A simple green salad with crisp lettuce, cucumbers, and cherry tomatoes balances the richness nicely. You can add a side of steamed broccoli or roasted vegetables to sneak in more color and nutrients. If you cook for kids, pair the soup with grilled cheese sandwiches or simple buttered noodles and call it a comfort-food feast.

Storage Options

Cool the soup to room temperature, 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 the soup thickens too much.
Reheat single portions in the microwave in short bursts, stirring between each burst so the soup heats evenly.
Freeze the soup in freezer-safe containers for up to 2 months, and stir well after thawing since dairy-based soups can separate slightly.