This Outback Potato Soup is rich, creamy, and loaded with tender potatoes, crispy bacon, and melted cheese. Inspired by the classic steakhouse favorite, this homemade version is easy to make and perfect for cozy dinners, family meals, or cold nights when you want something warm and satisfying.
Water, enough to cover potatoes for boiling
4 large russet or golden potatoes, diced
8 slices bacon, cooked and crumbled
2½ cups chicken stock or chicken broth
1 cup cold water
¾ cup cheddar cheese, plus more for topping (optional)
¾ cup heavy whipping cream
½ cup butter
⅓ cup all-purpose flour
¼ cup green onions, diced
½ sweet yellow onion, diced (optional)
½ tsp salt
½ tsp ground black pepper
Cook the Potatoes
Dice the potatoes into bite-sized pieces. Place them in a pot, cover with water, and boil until fork-tender. Drain and set aside.
Simmer the Broth
In a large pot, combine chicken stock, cold water, diced onion (if using), salt, and black pepper. Bring to a gentle simmer over medium heat and cook for about 20 minutes.
Make the Roux
In a separate saucepan, melt the butter over medium heat. Gradually whisk in the flour until a smooth paste forms. Cook for 2–3 minutes to remove the raw flour taste.
Thicken the Soup
Slowly whisk the roux into the simmering broth, stirring constantly to avoid lumps. The soup will begin to thicken.
Add the Cream
Pour in the heavy cream and stir gently to combine.
Simmer
Let the soup simmer for another 20 minutes, stirring occasionally, until creamy and well blended.
Add Potatoes
Gently fold the cooked potatoes into the soup and stir until evenly distributed.
Serve
Ladle soup into bowls and top with cheddar cheese, crumbled bacon, and green onions. Serve hot.
Extra creamy texture: Lightly mash some of the potatoes before adding them to the soup.
Cheese choice: Colby-Jack or Monterey Jack works great for authentic steakhouse flavor.
Thicker soup: Let it simmer a little longer or add an extra tablespoon of flour to the roux.
Make it lighter: Swap half-and-half for heavy cream if desired.
Storage: Refrigerate leftovers in an airtight container for up to 3 days.