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The Ultimate Creamy Loaded Potato Soup (Outback Style Copycat)

A creamy bowl of loaded potato soup topped generously with shredded cheddar cheese, crispy bacon bits, and fresh green onions.

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Make the best homemade potato soup that tastes like a restaurant favorite. This recipe delivers rich, creamy comfort packed with potatoes, cheese, and bacon, ready in about 30 minutes.

Ingredients

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  • 4 slices bacon, cooked and crumbled
  • 1 large yellow onion, chopped
  • 4 tablespoons unsalted butter
  • 1/4 cup all-purpose flour
  • 4 cups chicken broth
  • 6 medium Russet potatoes, peeled and diced
  • 1 teaspoon salt
  • 1/2 teaspoon black pepper
  • 1/2 teaspoon garlic powder
  • 2 cups whole milk
  • 1 cup heavy cream
  • 1 cup shredded sharp cheddar cheese, plus more for topping
  • 1/2 cup sour cream, plus more for topping
  • 2 green onions, sliced, for garnish

Instructions

  1. Cook the bacon in a large pot or Dutch oven over medium heat until crisp. Remove the bacon with a slotted spoon and set aside on a paper towel-lined plate. Leave about 1 tablespoon of bacon grease in the pot; discard the rest.
  2. Add the chopped onion to the pot with the bacon grease and cook until softened, about 5 minutes.
  3. Add the butter to the pot and let it melt. Whisk in the flour and cook for 1 minute, stirring constantly to create a roux.
  4. Gradually whisk in the chicken broth until smooth. Add the diced potatoes, salt, pepper, and garlic powder. Bring the mixture to a boil, then reduce heat, cover, and simmer for 10 to 15 minutes, or until the potatoes are tender.
  5. Use a potato masher to mash some of the potatoes against the side of the pot to thicken the soup. Do not over-mash; you want some texture remaining.
  6. Stir in the whole milk and heavy cream. Heat through gently over medium-low heat, but do not let the soup boil after adding the dairy.
  7. Remove the pot from the heat. Stir in the 1 cup of shredded cheddar cheese until fully melted and smooth. Stir in the 1/2 cup of sour cream until combined.
  8. Taste and adjust salt and pepper if needed. Serve the potato soup hot, topped with the reserved crumbled bacon, extra cheddar cheese, a dollop of sour cream, and sliced green onions.

Notes

  • For a thicker soup, use only half the amount of broth initially and add more liquid as needed during the simmering stage.
  • If you prefer a smoother texture, use an immersion blender to blend about half of the soup before adding the cheese and cream.
  • This soup is excellent made ahead; cool completely, store in an airtight container, and reheat slowly on the stovetop, adding a splash of milk if it thickens too much upon reheating.

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