Outback Steakhouse Potato Soup is creamy, rich, and incredibly easy to make at home. Bursting with flavor and velvety smooth in texture, it’s no wonder it has become a family favorite. Perfect for cozy nights when everyone is craving a comforting, hearty bowl of soup.
Love More Potato Soup Recipes? Try My Roasted Garlic Potato Soup or this Cheesy Potato Soup next.

Why You’ll Love This Recipe
The potatoes stay tender and chunky while the soup base becomes luxuriously smooth and creamy, coating every spoonful with comfort. Crispy bacon bits and melted sharp cheddar add savory richness and depth of flavor. Quick to make with simple ingredients, this soup is the perfect cozy, hearty meal for chilly days.
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Outback Steakhouse Potato Soup
- Total Time: 40 minutes
- Yield: About 6 cups
Description
This copycat Outback Steakhouse Potato Soup recipe delivers restaurant-quality comfort food at home. Rich, creamy, and loaded with tender potato chunks, cheddar cheese, bacon, and green onions.
Ingredients
For the Soup:
- 4 large russet potatoes, diced
- 2½ cups chicken stock (Swanson is my go-to)
- 1 cup water
- ½ small yellow onion, diced ½ teaspoon kosher salt
- ½ teaspoon black pepper
- ½ cup butter (real butter, not margarine!)
- 1/3 cup all-purpose flour
- ¾ cup heavy cream
For Toppings:
- ¾ cup shredded sharp cheddar cheese
- 1/8 cup bacon bits
- 1/8 cup green onions, diced
Instructions
I chop russets into dice-sized pieces – I gets mad if they’re too big for her spoon! Fill a big pot with salted water, add potatoes, and boil for 12-15 minutes until fork-tender.
Don’t let them get mushy! Last week I overcooked them and ended up with potato mush soup. Drain and set aside.
Pour chicken stock, water, onion (if using), salt, and pepper into your Dutch oven. I pick out onions anyway, so I skip them half the time.
Heat to medium and let it simmer gently – just tiny bubbles around the edges.
This used to terrify me, but Sarah walked me through it! Melt butter in your saucepan over medium heat until foamy.
Dump in all the flour and whisk like crazy for 3 full minutes. It’ll smell nutty when ready – don’t let it brown!
My first attempt was a disaster because I dumped all the roux in at once. Looked like cottage cheese floating in broth!
Add the roux one spoonful at a time to your simmering base, whisking constantly. Takes patience but watching that thin broth transform is so satisfying.
I always pull cream out early so it’s room temperature. Cold cream hitting hot soup creates weird lumps – learned that the hard way!
Pour it in slowly while stirring, then simmer for 20 minutes. The kitchen smell during this step is incredible.
Gently fold in those drained potato chunks with a wooden spoon. I want distinct pieces, not mashed potato soup.
Taste and add more salt – I always need more than I think. I usually appears asking “Is it ready yet?”
Ladle into bowls and top with sharp cheddar, bacon bits, and green onions. I use our wedding china bowls for this special soup.
Notes
Watch Your Heat: Keep everything barely bubbling after adding cream. My first kitchen disaster taught me this!
Cheese Strategy: Add cheese to individual bowls, not the whole pot. I ruined a batch trying to be fancy.
Don’t Mash: Keep those potato chunks intact. I got impatient during batch two and broke them up – big mistake.
- Prep Time: 20 minutes
- Cook Time: 20 minutes
- Category: Soup
- Method: Stovetop
- Cuisine: American
Ingredient List
For the Soup:
- 4 large russet potatoes, diced
- 2½ cups chicken stock (Swanson is my go-to)
- 1 cup water
- ½ small yellow onion, diced
- ½ teaspoon kosher salt
- ½ teaspoon black pepper
- ½ cup butter (real butter, not margarine!)
- 1/3 cup all-purpose flour
- ¾ cup heavy cream
For Toppings:
- ¾ cup shredded sharp cheddar cheese
- 1/8 cup bacon bits
- 1/8 cup green onions, diced
Why These Ingredients Work
Sarah (my friend who used to work at Outback) spilled the real secret – russet potatoes are non-negotiable because their starch content creates natural thickening. The chicken stock-to-water ratio took me three tries to nail.
That butter-flour roux technique transforms regular soup into restaurant-quality magic with zero chalky flour taste.
Essential Tools and Equipment
- Large soup pot (my 8-quart Dutch oven works perfectly)
- Medium saucepan for the roux
- Sharp knife for chopping
- Whisk (super important – no fork substitutes!)
- Ladle and measuring cups
How To Make Outback Steakhouse Potato Soup
Step 1: Cook the Potatoes
I chop russets into dice-sized pieces – I get mad if they’re too big for her spoon! Fill a big pot with salted water, add potatoes, and boil for 12-15 minutes until fork-tender.
Don’t let them get mushy! Last week I overcooked them and ended up with potato mush soup. Drain and set aside.
Step 2: Build Your Base
Pour chicken stock, water, onion (if using), salt, and pepper into your Dutch oven. I pick out onions anyway, so I skip them half the time.
Heat to medium and let it simmer gently – just tiny bubbles around the edges.
Step 3: Make the Roux
This used to terrify me, but Sarah walked me through it! Melt butter in your saucepan over medium heat until foamy.
Dump in all the flour and whisk like crazy for 3 full minutes. It’ll smell nutty when ready – don’t let it brown!
Step 4: Thicken Everything
My first attempt was a disaster because I dumped all the roux in at once. Looked like cottage cheese floating in broth!
Add the roux one spoonful at a time to your simmering base, whisking constantly. Takes patience but watching that thin broth transform is so satisfying.
Step 5: Add the Cream
I always pull cream out early so it’s room temperature. Cold cream hitting hot soup creates weird lumps – learned that the hard way!
Pour it in slowly while stirring, then simmer for 20 minutes. The kitchen smell during this step is incredible.
Step 6: Fold in Potatoes
Gently fold in those drained potato chunks with a wooden spoon. I want distinct pieces, not mashed potato soup.
Taste and add more salt – I always need more than I think. I usually appears asking “Is it ready yet?”
Step 7: Serve It Up
Ladle into bowls and top with sharp cheddar, bacon bits, and green onions. I use our wedding china bowls for this special soup.
You Must Know
The Roux Makes Everything: My first attempt was a disaster because I rushed this step. Cook that butter-flour mixture until it smells like toasted nuts – full 3 minutes minimum.
Personal Secret: My grandmother taught me to save ¼ cup of starchy potato water before draining. If your soup gets too thick later, this brings it back to perfect consistency without watering down flavor.
Pro Tips & Cooking Hacks
- Watch Your Heat: Keep everything barely bubbling after adding cream. My first kitchen disaster taught me this!
- Cheese Strategy: Add cheese to individual bowls, not the whole pot. I ruined a batch trying to be fancy.
- Don’t Mash: Keep those potato chunks intact. I got impatient during batch two and broke them up – big mistake.
Flavor Variations & Suggestions
My friend Madison loves spicy food, so we tried jalapeños – incredible kick! My neighbor Jim suggested smoked gouda instead of cheddar for amazing campfire-like depth.
For special occasions, I add a splash of white wine during base-building. Elevates the whole experience!
Make-Ahead Options
I make huge batches every other weekend and freeze individual mason jar portions. Leave space at the top – learned that lesson with exploded jars!
I take thermos containers to school and her friends always ask what smells so amazing. You can prep everything except adding potatoes, then refrigerate for three days.
How to Store Your Outback Steakhouse Potato Soup
Fridge: Keeps 4 days covered. It thickens when cold, so add chicken stock when reheating.
Freezer: Mason jars work great for 3 months. Thaw overnight in fridge.
Reheating: Low heat on stove only. Microwave creates hot spots and makes dairy separate.
Allergy Information
Contains: Dairy and gluten.
Dairy-free: My neighbor Jenny uses Earth Balance butter and coconut cream. She tops with nutritional yeast instead of cheese.
Gluten-free: Bob’s Red Mill flour blend works perfectly, or use 3 tablespoons cornstarch instead.
Questions I Get Asked A Lot
Different potato types?
Yukon golds work when russets are expensive, but russets give the best texture. I tried red potatoes once – disaster!
My soup is lumpy!
You added roux too fast. Next time, one spoonful at a time while whisking constantly.
Slow cooker version?
Cook potatoes separately first, then everything except cream goes in slow cooker for 4 hours on low. Add cream last 30 minutes.
Doesn’t taste like Outback’s?
You probably need more salt and butter. Restaurant food is much richer than home cooking!
💬 Made this soup? Drop a comment below! Did your family love it as much as mine does?