Creamy Cheddar Outback Potato Soup (Printable Version)

Velvety potato soup with sharp cheddar, smoky bacon, and fresh chives—a comforting steakhouse-inspired classic ready in under an hour.

# What You'll Need:

→ Vegetables & Dairy

01 - 6 large russet potatoes, peeled and diced (about 2 lbs)
02 - 1 medium yellow onion, finely chopped
03 - 2 cloves garlic, minced
04 - 3 cups low-sodium chicken broth (or vegetable broth for vegetarian)
05 - 2 cups whole milk
06 - 1 cup heavy cream
07 - 2 ½ cups sharp cheddar cheese, shredded
08 - ¾ cup sour cream
09 - 4 tablespoons unsalted butter

→ Proteins & Garnish

10 - 6 strips bacon, cooked and crumbled (optional; omit for vegetarian)
11 - ¼ cup fresh chives, finely sliced
12 - Salt and freshly ground black pepper, to taste

→ Spices & Pantry

13 - ½ teaspoon smoked paprika
14 - ¼ teaspoon cayenne pepper (optional)

# Directions:

01 - Melt the butter in a large soup pot over medium heat. Add the chopped onion and sauté until translucent, about 4 minutes. Add the minced garlic and cook for 1 additional minute until fragrant.
02 - Stir in the diced potatoes, smoked paprika, and cayenne pepper. Season generously with salt and freshly ground black pepper.
03 - Pour in the chicken broth and bring to a boil. Reduce the heat to a simmer, cover the pot, and cook for 20 to 25 minutes until the potatoes are fork-tender.
04 - Remove approximately one-third of the soup from the pot. Mash the potatoes with a potato masher or blend until smooth, then return to the pot. This creates a thicker, creamier texture while maintaining some potato chunks.
05 - Stir in the whole milk and heavy cream. Heat gently over low heat until warmed through. Do not allow the soup to boil after adding the dairy.
06 - Add the shredded sharp cheddar cheese a handful at a time, stirring continuously until each addition is completely melted and smoothly incorporated into the soup.
07 - Remove the pot from the heat. Gently stir in the sour cream until the soup is smooth and well combined.
08 - Ladle the soup into bowls. Top each serving with crumbled bacon, sliced fresh chives, and additional shredded cheddar as desired.

# Expert Hints:

01 -
  • That smoky bacon and sharp cheddar combination hits every comfort craving you have without requiring any fancy technique.
  • Partial mashing gives you the best of both worlds, creamy body with real potato chunks that make each bite satisfying.
  • It reheats beautifully the next day, which means lunch is already sorted and somehow tastes even better.
02 -
  • Never let the soup boil after adding dairy or you will end up with a curdled, grainy mess that no amount of stirring can fix.
  • Shredding your own cheese from a block instead of using pre shredded bags is the single biggest difference between a smooth soup and a stringy one.
  • For a vegetarian version, swap chicken broth for vegetable broth and simply omit the bacon, maybe add sauteed mushrooms for that savory depth.
03 -
  • Salt your potato cooking liquid more generously than you think is necessary, potatoes need serious seasoning to taste like anything once they are surrounded by dairy.
  • Let the soup rest for ten minutes off the heat before serving, it thickens to the perfect consistency and the flavors settle into something far more cohesive.