When it comes to comfort food on a busy weeknight, nothing beats a steaming bowl of creamy potato soup. This Outback Steakhouse potato soup brings restaurant-quality comfort straight to your table in just 40 minutes. I discovered this recipe during one of those hectic Tuesday evenings when my kids were asking what was for dinner and I needed something warm, satisfying, and genuinely easy to pull together. The beauty of this soup is how it balances rich, creamy flavors with tender potatoes, sharp cheddar cheese, and crispy bacon without requiring any complicated techniques.
Table of Contents
Ingredients for Outback Steakhouse Potato Soup
I always use russet potatoes for this soup because they break down beautifully, creating that signature creamy texture without any blending required. Pro tip for selecting your potatoes: choose ones that are firm and free of soft spots, and peel them just before cooking to prevent browning.
- 4 large russet potatoes, peeled and diced into 1/2-inch cubes (about 6 cups diced)
- 4 cups chicken broth (good quality makes a difference here)
- 1/4 cup all-purpose flour
- 1 cup heavy cream
- 1/2 cup sour cream (full fat works best for creamy texture)
- 1/2 cup shredded cheddar cheese (plus extra for garnish) – I recommend using sharp cheddar for deeper, more authentic flavor
- 1/4 cup crumbled bacon (plus extra for garnish) – In my experience, cooking your own bacon gives much better results than store-bought
- 2 green onions, thinly sliced (for garnish)
- 2 tablespoons butter
- 1 teaspoon garlic powder
- 1 teaspoon onion powder
- Salt and pepper to taste – I usually taste as I go and adjust at the end for perfect seasoning
Equipment Needed: Large pot (at least 6-quart capacity), whisk, small mixing bowl, ladle, measuring cups and spoons

Step-by-Step Instructions
I recommend having all your ingredients prepped and measured before you start cooking. This makes the whole process smooth and stress-free, especially on busy weeknights when you need dinner on the table quickly.
Step 1: Place your diced potatoes in a large pot and cover completely with chicken broth. Bring to a rolling boil over medium-high heat, then reduce the heat to medium and let them simmer gently for about 15 minutes until the potatoes are fork-tender and beginning to break apart at the edges. The potatoes should be soft enough to easily break with a fork.
Step 2: While the potatoes cook, remove a small bowl from the heat. Whisk together the flour and 3 tablespoons of heavy cream in the bowl until you have a smooth paste with no lumps. This step prevents the flour from clumping when you add it to the hot soup, which is the key to achieving a smooth, silky texture.
Step 3: Once the potatoes are tender, add the butter to the pot and stir until completely melted. Slowly pour in your flour mixture while whisking constantly. Keep stirring for about 1-2 minutes until the soup thickens and coats the back of a spoon. You’ll notice the soup becoming richer and more velvety.
Step 4: Pour in the remaining heavy cream and let everything simmer together for 5 minutes. Keep the heat at medium to prevent any boiling, which could cause the cream to break.
Step 5: Reduce heat to medium-low and stir in the sour cream, shredded cheddar cheese, garlic powder, onion powder, salt, and pepper. Stir gently until the cheese melts completely and the soup becomes smooth and creamy. Keep heat at medium-low once cream is added. If the soup breaks or appears curdled, gently whisk in 1/4 cup fresh heavy cream off heat until smooth again.
Step 6: Ladle into bowls and top generously with extra shredded cheddar, crumbled bacon, and fresh green onions. Serve immediately while hot.
What to Serve with Outback Steakhouse Potato Soup
This creamy soup pairs beautifully with sides that add texture and complement the richness of the main dish.
Crusty Bread for Dipping: A thick slice of warm, buttered bread is perfect for soaking up every last bit of this rich soup. The crispy exterior and soft interior create nice textural contrast. Try pairing this soup with our easy <a href=”https://yumnight.com/homemade-cheesy-breadsticks/”>homemade cheesy breadsticks</a> for an elevated presentation.
Green Salad: A fresh, crisp salad with a tangy vinaigrette cuts through the richness beautifully and adds fresh vegetables to the meal for nutritional balance. A simple lemon vinaigrette works wonderfully here.
Grilled Cheese Sandwich: This classic pairing turns your soup into the ultimate comfort food combo. The melty cheese and toasted bread complement every spoonful perfectly. Our <a href=”https://yumnight.com/bacon-grilled-cheese-sandwich/”>bacon grilled cheese sandwich</a> would be absolutely perfect alongside this soup for maximum comfort.
Roasted Vegetables: Roasted broccoli or Brussels sprouts add an earthy note and provide healthy vegetables alongside this indulgent soup. The slight char on roasted vegetables contrasts nicely with the creamy soup base.
Simple Coleslaw: A cool, crunchy coleslaw offers textural contrast and refreshes your palate between bites of the creamy soup. This works especially well if you want to balance the richness.

Storage & Serving Tips
Store leftover soup in an airtight container in the refrigerator at 40°F or below for up to 4 days. This makes it perfect for meal prep or easy lunches throughout the week.
To reheat, warm gently on the stove over medium-low heat, stirring occasionally and adding a splash of milk or heavy cream to restore that silky texture. You can also reheat individual portions in the microwave, stirring halfway through. Avoid boiling, which can cause the cream to separate and create a grainy texture.
This soup freezes beautifully in portions for up to 3 months. Freeze in individual portions in freezer-safe containers or lay flat in freezer bags to save space. Thaw overnight in the refrigerator and reheat gently with a bit of extra cream stirred in. Pro tip: freeze portions in individual containers so you can grab exactly what you need on busy nights.
FAQs
Can I make this soup ahead of time?
Yes. You can prepare this soup up to 4 days in advance and store it in the refrigerator. Reheat gently on the stove over medium-low heat, adding a splash of cream or milk to restore the creamy consistency.
What can I substitute for heavy cream?
If you need a lighter version, you can use half-and-half or a combination of whole milk and butter, though the soup won’t be quite as rich. Greek yogurt can also work as a substitute for sour cream, though the flavor will be slightly tangier.
What should I do if my soup looks broken or curdled?
This sometimes happens if the temperature gets too high after adding the cream. Simply remove the pot from heat and whisk in 1/4 cup of fresh heavy cream until the soup becomes smooth again. This will restore the creamy texture.

Outback Steakhouse Potato Soup
Ingredients
Equipment
Method
- Place diced potatoes in a large pot and cover with chicken broth. Bring to a rolling boil over medium-high heat, then reduce heat to medium and simmer for about 15 minutes until potatoes are fork-tender and beginning to break apart at the edges.
- While potatoes cook, remove a small bowl from heat. Whisk together flour and 3 tablespoons of heavy cream until smooth with no lumps. This prevents clumping when added to hot soup.
- Once potatoes are tender, add butter to the pot and stir until melted. Slowly pour in flour mixture while whisking constantly for 1-2 minutes until soup thickens and coats the back of a spoon.
- Pour in remaining heavy cream and let simmer together for 5 minutes at medium heat. Keep heat at medium to prevent boiling, which could break the cream.
- Reduce heat to medium-low and stir in sour cream, cheddar cheese, garlic powder, onion powder, salt, and pepper. Stir gently until cheese melts completely and soup becomes smooth. If soup breaks or appears curdled, whisk in 1/4 cup fresh cream off heat until smooth.
- Ladle into bowls and top generously with extra shredded cheddar, crumbled bacon, and fresh green onions. Serve immediately while hot.








