Outback Potato Soup is a creamy, comforting bowl that feels like a warm hug on a chilly day. It’s loaded with tender potatoes, bits of crispy bacon, melted cheese, and a touch of green onion for a little fresh crunch. The soup is thick and rich, making it the perfect cozy meal when you want something filling and satisfying.
I love making this soup whenever I’m craving something simple but special. One of my favorite things about it is how easy it is to customize—you can add as much cheese or bacon as you want, and it still tastes amazing. I usually like to let it simmer slowly so all the flavors really come together and the potatoes turn perfectly soft.
This soup is great on its own, but I like to serve it with some crusty bread or even a light salad on the side. It’s the kind of meal that’s great for sharing with family or friends because everyone can warm up and feel instantly cozy. I always remember making this on a weekend with my family, and how it brought us all to the table smiling and full of happy, warm bellies.
Key Ingredients & Substitutions
Bacon: Bacon adds a smoky, salty crunch that rounds out the soup. For a vegetarian option, skip the bacon or use smoked paprika to bring in a similar smoky flavor.
Potatoes: Yukon Gold is my favorite for its creamy texture, but Russets work well too. Russets can make the soup a bit fluffier, while Yukon Golds keep it smooth and buttery.
Chicken Broth: This builds the soup’s base flavor. Vegetable broth works well for a vegetarian version and keeps the taste light.
Sharp Cheddar Cheese: Sharp cheddar gives a nice tang. You can swap it with mild cheddar, Monterey Jack, or Colby if you prefer a milder cheese.
Heavy Cream: Heavy cream makes the soup rich and creamy. For a lighter option, try half-and-half or whole milk, but your soup will be a bit less thick.
How Do You Get the Soup Creamy but Still Chunky?
The key is blending only part of the soup so you get that creamy base with soft potato chunks for texture. Here’s how I do it:
- Use an immersion blender directly in the pot and puree about half the soup, leaving some potato pieces whole.
- If you don’t have an immersion blender, transfer half the soup to a regular blender, puree it, then stir it back in.
- Take your time blending to avoid turning everything into a smooth puree. The contrast makes the soup feel homemade and comforting.
This method gives you a lovely balance of silky and chunky that makes each spoonful interesting and hearty without being heavy.

Equipment You’ll Need
- Large heavy-bottomed pot or Dutch oven – I use this because it heats evenly and can handle simmering all the ingredients together.
- Slotted spoon – helps remove crispy bacon without losing the drippings used for flavor.
- Immersion blender or regular blender – makes it easy to blend part of the soup for a creamy texture.
- Cutting board and sharp knife – for chopping onions and potatoes quickly and safely.
- Measuring spoons and cups – keep your ingredients just right for the best flavor.
Flavor Variations & Add-Ins
- Use crumbled cooked sausage or cooked shredded chicken instead of bacon for extra protein and different flavors.
- Add sautéed mushrooms or diced bell peppers for more veggie variety and texture.
- Mix in chopped fresh herbs like parsley or thyme to brighten the taste.
- Sprinkle with hot sauce or a pinch of cayenne for some extra heat on colder days.

Outback Potato Soup
Ingredients You’ll Need:
Main Ingredients:
- 4 slices bacon, chopped
- 1 medium onion, finely chopped
- 5 cups Yukon Gold or Russet potatoes, peeled and diced
- 4 cups chicken broth
- 1 cup heavy cream
- 1 cup shredded sharp cheddar cheese, divided
- ½ teaspoon garlic powder
- Salt and freshly ground black pepper, to taste
- 2 tablespoons unsalted butter
- 2 tablespoons all-purpose flour
For Garnishing & Serving:
- ¼ cup chopped fresh chives
- Smoked paprika or cayenne pepper (optional)
- Crackers or toasted bread slices
Time Needed:
This recipe will take about 10 minutes to prep and 30 minutes to cook, making it around 40 minutes from start to finish. Perfect for a cozy, hearty meal on a chilly day.
Step-by-Step Instructions:
1. Cook the Bacon and Sauté the Onion:
Heat a large pot or Dutch oven over medium heat. Add the chopped bacon and cook until crispy. Remove the bacon with a slotted spoon and place it on paper towels to drain. Keep about 2 tablespoons of the bacon fat in the pot.
2. Make the Soup Base:
Add butter to the pot with the bacon fat. When melted, add the chopped onions and sauté for about 5 minutes until softened and clear. Sprinkle in the flour and stir constantly for 2 minutes to cook out the raw flour taste—this helps thicken the soup.
3. Add Broth and Potatoes:
Slowly whisk in chicken broth to avoid lumps. Bring the mixture to a gentle simmer, then add the diced potatoes and garlic powder. Let it cook for about 15 to 20 minutes, or until the potatoes are tender.
4. Blend and Add Cream & Cheese:
Use an immersion blender to partially blend the soup, leaving some potato chunks for texture. If you don’t have an immersion blender, blend half the soup in a regular blender, then return it to the pot. Stir in the heavy cream and half of the shredded cheddar cheese, cooking on low heat until the cheese melts and the soup is creamy.
5. Season and Serve:
Season with salt and pepper to taste. Ladle the soup into bowls and top each with crispy bacon, the remaining cheese, and chopped chives. Add a sprinkle of smoked paprika or cayenne if you like a little heat. Serve with crackers or toasted bread slices on the side.
Enjoy your warm, creamy Outback Potato Soup—a perfect dish to relax and savor on any day!

Can I Make This Soup Ahead of Time?
Yes! You can prepare the soup up to the blending step and refrigerate it for up to 2 days. Reheat gently on the stove, then add the cream and cheese just before serving for the best texture and flavor.
Can I Use Frozen Potatoes?
Frozen diced potatoes can work in a pinch, but thaw them completely and pat dry to avoid adding extra water to the soup. Cooking time may be slightly shorter since frozen potatoes are partially cooked.
What Can I Substitute for Heavy Cream?
If you want a lighter version, use half-and-half or whole milk, but the soup will be less rich and creamy. For a dairy-free option, unsweetened coconut milk or cashew cream are good alternatives.
How Do I Store Leftovers?
Store leftover soup in an airtight container in the fridge for up to 3 days. Reheat gently on the stove, stirring occasionally, and add extra cream if it seems too thick after reheating.