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Cheesy Potato Soup (Outback Steakhouse Copycat)

This cheesy potato soup is an Outback Steakhouse copycat and ultimate comfort food. Made from scratch and a better for you replica of the original.

Better-For-You Copycat

Although this cheesy potato soup isn't healthy for you as it is considered comfort food, it doesn't have a lot of extra unnecessary added fat and oils that most restaurants add to their dishes.

Two bowls of cheesy potato soup in white-rimmed bowls with blue napkins.

Yes, that makes them delicious but you can make replicas of your favorite restaurant recipes at home that are better for you!

This Outback Steakhouse copycat potato soup will satisfy your cravings for the restaurant favorite.

Side view of loaded baked potato soup garnished with bacon, cheese, and scallions.

Easy Stove Top Cheesy Potato Soup

Making potato soup on the stove top is simple to do and it's all in one pot! That means less clean up and more convenience- yes, please!

Cut the bacon into small pieces and cook them over medium-heat in a large pot or Dutch Oven. Once the bacon is browned, remove the pieces from pot and drain them on paper towels.

Leave two tablespoons of bacon grease in the pot and add the diced onions, garlic, and butter.

Cook until the onions are translucent then sprinkle the flour into the pot. Whisk the flour to combine with the other ingredients.

Chicken broth is then added into the pot or Dutch Oven, along with the cubed potatoes, half & half (or heavy cream).

Cream of chicken is added to this recipe but it can be left out if you wish.

Salt and pepper are then sprinkled on top.

Potato soup outback steakhouse copycat style in a white-rimmed bowl with beige charger plate.

Allow the mixture to boil for 10 minutes and then reduce the temperature to a simmer.

I use an immersion blender for this next step which is to blend half of the soup into a puree. If you do not have an immersion blender, carefully remove half of the soup to a countertop blender and puree.

Allow the steam to escape while blending so that it doesn't build pressure and cause the liquid to explode under pressure.

Add the pureed soup back to the pot or Dutch Oven and stir in the cheddar cheese and mix to blend well. The cheese simmering with the cream will create a creamy cheesy potato soup.

Add the bacon back into the soup and simmer for another 10-15 minutes, stirring occasionally.

Garnish this soup with scallions, chopped bacon, and sour cream.

RELATD: Instant Pot Chicken & Gnocchi Soup (Olive Garden Copycat)

Copycat Outback Steakhouse cheesy potato soup bowls with spoons and napkins.

What Ingredients go into Cheesy Potato Soup?

  • Chicken Broth - I use low-sodium but you can use regular.
  • Butter - It helps sauté the onion and garlic. It is also a lesser amount than the original dish.
  • Vegetables - Onions, garlic, and russet potatoes. Cut the potatoes into 1-inch cubes so they cook evenly. It makes them the perfect size for potato soup.
  • Flour - Used to thicken the soup.
  • Salt & Pepper
  • Cream of Chicken - Can be left out but helps enhance flavor.
  • Half & Half - Makes the potato soup creamy.
  • Cheddar Cheese
  • Bacon - both bacon and grease are used in this soup. The grease adds flavor into the soup and bacon is mixed into the soup for added texture and flavor. It is also used as a garnish.
  • Scallions and Sour Cream - Added as a garnish.

YOU MAY ALSO LIKE: Spinach and Cheese Ravioli Skillet

A spoonful of cheesy potato soup garnished with bacon and scallions.

Pressure Cooker Cheesy Potato Soup

This Outback Steakhouse Potato Soup copycat also has an Instant Pot (pressure cooker) version!

It's made with the same delicious ingredients but without the need to stir the pot! The recipe for the Instant Pot version is here.

A close-up of a bowl of potato soup.

📖 Recipe

Yield: 4 servings

Cheesy Potato Soup (Outback Steakhouse Copycat)

Cheesy Potato Soup (Outback Steakhouse Copycat)

This cheesy potato soup is an Outback Steakhouse copycat and ultimate comfort food. Made from scratch and a better for you replica of the original.

Prep Time 10 minutes
Cook Time 25 minutes
Total Time 35 minutes


  • 6 slices bacon, chopped
  • 2 tablespoon butter
  • 1 onion, diced
  • 3 cloves of garlic
  • ½ cup flour
  • 4 cups low-sodium chicken broth or stock
  • 8 potatoes, peeled and cubed into 1 inch pieces
  • 1 ¼ teaspoon salt
  • 1 teaspoon pepper
  • 10.5 oz can cream of chicken (can be omitted)
  • 1 cup half & half (or heavy cream)
  • 2 cups shredded cheddar cheese
  • bacon, additional, for garnish
  • scallion, for garnish
  • sour cream, for serving


  1. In a large soup pot or Dutch Oven, cut the bacon into small pieces and cook over medium heat.
  2. Once the bacon has browned, remove the pieces from the stove, and drain on paper towels.
  3. Remove all except 2 tablespoons of bacon grease from the pot.
  4. Add the onions, garlic, and butter to the pot.
  5. Allow the onions to cook until they are translucent.
  6. Sprinkle in the flour and whisk to combine well.
  7. Add the chicken broth or stock along with the cubed potatoes, and the half & half.
  8. If you are using cream of chicken, add it in now.
  9. Bring to a boil and cook for 10 minutes.
  10. Reduce the heat to a simmer and either use an immersion blender or a countertop blender to blend half of the soup.
  11. If using a countertop blender, carefully remove the soup from the stove and vent the soup while blending to prevent spills and spewing. Add the soup back to the stove if using this method.
  12. Stir in the cheddar cheese and the bacon pieces.
  13. Simmer for another 10-15 minutes, stirring occasionally.
  14. Garnish with additional bacon pieces, scallions, and sour cream.

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Nutrition Information:



Serving Size:


Amount Per Serving: Calories: 1005Total Fat: 48gSaturated Fat: 24gTrans Fat: 1gUnsaturated Fat: 20gCholesterol: 128mgSodium: 2336mgCarbohydrates: 105gFiber: 9gSugar: 10gProtein: 43g

Nutrition calculation is a rough estimate and can vary depending on the cooking technique and the exact ingredients used. For informational purposes only.

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Thursday 17th of March 2022

This soup was delicious! It will definitely be on my regular rotation of recipes. Thanks so much for sharing.

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