Name: Outback Steakhouse Potato Soup Recipe
Prep time: 20 min
Cook time: 30 min
Total time: 50 min
Ingredients: 6 medium russet potatoes, peeled and diced; 6 cups chicken broth; 6 slices bacon, chopped; 1 cup yellow onion, finely chopped; 2 cloves garlic, minced; 4 tablespoons unsalted butter; 1/3 cup all-purpose flour; 2 cups whole milk; 1 cup heavy cream; 1 1/2 cups shredded cheddar cheese, divided; 1/2 teaspoon black pepper; 1 teaspoon kosher salt; 1/2 teaspoon paprika; 1/2 teaspoon onion powder; 1/2 cup sour cream; 1/4 cup green onions, sliced

Outback Steakhouse Potato Soup Recipe tastes rich, ultra-creamy, and loaded with tender potatoes, bacon, and cheese, just like the restaurant version. It works perfectly for busy weeknights or cozy weekends, and you can get it on the table in about 45–50 minutes. I first reverse-engineered this soup on a snowy Sunday, and my family now requests it more than the actual steak.

Why Outback Steakhouse Potato Soup Recipe Is Worth It

This copycat Outback Steakhouse Potato Soup Recipe gives you that thick, cheesy, bacon-topped bowl without leaving your kitchen or your sweatpants. The potatoes turn silky and soft, the broth tastes rich and savory, and every spoonful feels like a hug with extra cheddar.

You control the salt, the toppings, and the texture, so it can taste even better than the restaurant version. Plus, it reheats beautifully, which means you cook once and enjoy it for lunches or quick dinners all week.

“This Outback Steakhouse Potato Soup Recipe tastes just like the restaurant version, only creamier and more comforting at home. ★★★★★”

Ingredients You Need

Potatoes & Veggies

3 pounds russet potatoes, peeled and cut into 1/2-inch cubes
- Russets give that classic fluffy, creamy texture. Yukon Golds also work and taste a bit more buttery.
1 medium yellow onion, finely diced
2 stalks celery, finely diced
2 medium carrots, peeled and finely diced (optional, not traditional, but adds sweetness and color)
3 cloves garlic, minced

Bacon & Fat

6–8 slices thick-cut bacon, chopped
- Use a smoky brand you like; the bacon drippings add big flavor.
3 tablespoons unsalted butter
- If you use salted butter, reduce added salt later.

Thickener & Liquid

1/3 cup all-purpose flour
4 cups low-sodium chicken broth
- Use a good-quality boxed broth or homemade if you have it.
2 cups whole milk
1 cup heavy cream
- You can swap half-and-half for a slightly lighter soup.

Seasonings

1 1/2 teaspoons kosher salt, plus more to taste
1 teaspoon freshly ground black pepper
1 teaspoon garlic powder
1 teaspoon onion powder
1/2 teaspoon smoked paprika (optional, but great with bacon)
1/4 teaspoon cayenne pepper (optional, for a mild kick)

Cheesy Goodness & Toppings

2 cups shredded sharp cheddar cheese, divided
- Shred from a block so it melts smoothly; pre-shredded cheese often includes anti-caking starch.
1/2 cup sour cream
1/4 cup chopped green onions or chives
Extra cooked bacon pieces for topping

Pantry Shortcuts & Substitutions

Use frozen diced hash brown potatoes in place of fresh potatoes to save time; no peeling or chopping.
Use pre-cooked bacon pieces if you want less mess, but still warm them in a pan to wake up the flavor.
Use garlic powder and onion powder only if you run out of fresh garlic or onion; the flavor stays solid.

Equipment List

Large heavy-bottomed pot or Dutch oven (5–6 quart)
Sharp chef’s knife and cutting board
Wooden spoon or silicone spatula
Ladle
Potato masher or immersion blender (for texture control)
Measuring cups and spoons

Quick Tips & substitutions

Dice potatoes evenly so they cook at the same rate and stay tender, not mushy.
Brown bacon slowly over medium heat so it turns crisp and leaves plenty of flavorful drippings.
Use low-sodium broth so the soup does not turn too salty once you add bacon and cheese.
Shred cheese from a block so it melts smoothly and avoids grainy texture.
Stir milk and cream in gradually over medium-low heat so the dairy does not curdle.
Mash only part of the potatoes or blend briefly so the soup stays thick but still has chunks.
Swap chicken broth with vegetable broth for a meatless base, then skip bacon or use a plant-based version.
Use gluten-free all-purpose flour or cornstarch slurry if you need a gluten-free thickener.

How to Make Outback Steakhouse Potato Soup Recipe

Step 1: Prep the Ingredients

Peel the potatoes and cut them into 1/2-inch cubes. Dice onion, celery, and carrots, and mince the garlic. Shred the cheddar cheese and chop the green onions, then set everything near the stove so you move quickly.

Step 2: Cook the Bacon

Place the chopped bacon in a large cold pot or Dutch oven. Turn the heat to medium and cook, stirring often, until the bacon turns crisp and browned, about 8–10 minutes. 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 the Aromatics

Add the butter to the pot with the bacon fat and let it melt. Stir in the diced onion, celery, and carrots, and cook over medium heat until the veggies soften and turn fragrant, about 5–7 minutes. Add the minced garlic and cook 30–60 seconds, just until it smells garlicky.

Step 4: Build the Roux

Sprinkle the flour over the cooked vegetables. Stir constantly for 1–2 minutes so the flour coats the veggies and turns lightly golden. This step cooks out the raw flour taste and sets you up for a thick, creamy soup.

Step 5: Add Broth and Potatoes

Slowly pour in the chicken broth while you whisk or stir, and scrape up any browned bits from the bottom of the pot. Add the cubed potatoes and stir everything together. Bring the mixture to a gentle boil over medium-high heat, then lower the heat to maintain a steady simmer.

Step 6: Season and Simmer

Stir in salt, pepper, garlic powder, onion powder, smoked paprika, and cayenne if you use it. Cover the pot partially and simmer for 15–20 minutes, stirring occasionally, until the potatoes turn very tender when you pierce them with a fork. Keep the heat gentle so the bottom does not scorch.

Step 7: Add Milk, Cream, and Cheese

Turn the heat to low. Pour in the milk and heavy cream slowly while you stir. Add 1 1/2 cups of the shredded cheddar cheese and stir until it melts completely and the soup turns velvety.

Step 8: Adjust Texture

Use a potato masher to mash some of the potatoes right in the pot, leaving some chunks for texture. If you prefer a smoother soup, blend a portion with an immersion blender, then stir it back in. If the soup looks too thick, add a splash of extra milk or broth until it reaches your favorite consistency.

Step 9: Finish with Sour Cream and Bacon

Stir in the sour cream until it blends smoothly into the soup. Taste and adjust seasoning with more salt and pepper if needed. Stir in half of the cooked bacon, and keep the rest for topping.

Step 10: Serve

Ladle the Outback Steakhouse Potato Soup Recipe into bowls. Top each bowl with extra cheddar, crispy bacon, and chopped green onions or chives. Serve hot while the cheese stretches and the toppings stay crisp.

Recipe Variations

Gluten-free: Use a gluten-free all-purpose flour blend or 2–3 tablespoons cornstarch mixed with cold milk instead of regular flour.
Vegan: Use vegetable broth, plant-based butter, dairy-free milk and cream (oat or cashew work well), vegan cheese, and coconut yogurt or vegan sour cream, and swap bacon with smoky tempeh or coconut bacon.
Lighter version: Use half-and-half instead of heavy cream, and use turkey bacon or skip bacon and add extra veggies.
Low carb: Swap half the potatoes with cauliflower florets and cook them together, then blend part of the soup for body.
Extra protein: Stir in cooked shredded chicken or diced ham near the end of cooking.
Spicy: Add more cayenne, a pinch of red pepper flakes, or a spoonful of chipotle in adobo for smoky heat.
Extra cheesy: Stir in an extra 1/2–1 cup of cheddar or a mix of cheddar and Monterey Jack.

Ways to Serve Outback Steakhouse Potato Soup Recipe

Serve with warm crusty bread, garlic toast, or soft dinner rolls for dunking.
Pair with a simple green salad with ranch or vinaigrette for a balanced meal.
Add a side of steamed broccoli or roasted veggies to bring in more color and nutrients.
Offer toppings bar–style with bowls of cheese, bacon, green onions, and sour cream so everyone customizes their bowl.
Serve in bread bowls for a fun restaurant-style presentation at home.

Storage Success

Cool the Outback Steakhouse Potato Soup Recipe to room temperature, then store it in airtight containers in the fridge for up to 3–4 days. Reheat gently on the stove over low to medium-low heat and stir often so the dairy stays smooth. Add a splash of milk or broth if it thickens in the fridge. Skip freezing if possible, since the potatoes and dairy can turn grainy, but if you freeze it, thaw overnight in the fridge and reheat slowly with extra liquid and a good stir.