Instant Pot or Crockpot Outback Loaded Potato Soup is a creamy potato, bacon and cheese soup just like the restaurant but you can make it at home!

Instant Pot Outback Steakhouse Potato Soup Recipe
This is a thick, rich and creamy copycat of the Outback Steakhouse Potato Soup. It’s loaded with chunks of potato, onions, carrots, crispy bacon and cheddar cheese. You’re going to love that you can make a batch for the whole family at home for a fraction of the cost of going out to eat. I love making this soup in the pressure cooker but you can also make it in the slow cooker (both instructions are listed in the recipe card below).
The flavors of this creamy potato soup are what you’d find in a loaded up baked potato…potato, cheese, bacon, green onion. To make it even more baked potato-ish you could add a dollop of sour cream to your bowl of soup. I like this soup because the consistency is creamy but it’s not pureed potato soup. You still have chunks of potato and chunks of carrots in the soup.
Ingredients/Substitution Ideas
- Uncooked bacon
- Diced onion–fresh or frozen or scallions
- Carrots
- Chicken broth–or water and Better than Bouillon chicken base
- Red potatoes–or yellow potatoes. I cut mine into half inch sized cubes. I don’t peel my potatoes because I like the skins of the potatoes when they are red. However, if you use russet potatoes I would peel them.
- Seasoned salt–Lawry’s brand is good
- Butter
- Flour–I used all purpose flour
- Milk–I used 1% but whole milk would be even better! If you want you can use half milk and have heavy cream.
- Shredded sharp cheddar cheese–your best bet is to shred cheese off of the block (it melts better) instead of using pre-shredded cheddar cheese blend which tends to clump up. You can also use another type of cheese like a colby monterrey jack blend.
- Diced green onions–for topping, you can also use chives
- Kosher salt and black pepper–to taste. I like freshly ground black pepper to taste.
Steps
Turn Instant Pot to saute setting. When display says HOT add in the chopped bacon and cook until crispy. Use a slotted spoon to move bacon to a paper towel lined plate. Drain all but 2 Tbsp of the bacon grease.
Add the carrots and onions into the bacon grease and saute for 4 minutes.

Stir in the chicken broth and scrape bottom of pot so that none of the veggies are sticking. Add in the potatoes and seasoned salt.

Cover Instant Pot and secure the lid. Make sure valve is set to sealing. Set the soup button to 5 minutes. When time is up let pot sit for 10 minutes and then move valve to venting. Remove the lid. If you don’t have a soup button on your Instant Pot then just use the pressure cook/manual button. I find that the soup button comes to a more gentle boil and keeps the broth clearer for soups.

In a small bowl whisk together the melted butter and flour until smooth and creamy.

Stir the mixture into the Instant Pot. Temper the milk by stirring a hot cup of soup into it. Then pour the milk mixture into the pot. Turn Instant Pot to saute setting. Let the soup simmer and thicken while you are stirring it. Once soup has thickened turn off the pot.

Stir in the cheese and the bacon. Salt and pepper to taste. Ladle into bowls and top each bowl with a tablespoon of green onions and extra bits of bacon. Eat and enjoy!


Notes/Tips
- This Outback Steakhouse potato soup copycat recipe is so hearty, it’s already a filling meal on its own. But if you want to serve it with a side, you can’t go wrong with breadsticks or fresh French Bread.
- I used my 6 quart Instant Pot*. You can also make this in a 3 or 8 quart pot.
- This recipe can be gluten-free if you use another thickener like cornstarch instead of flour.
- Store leftovers in an airtight container* in the refrigerator for up to 5 days or in the freezer for up to 3 months. When you’re ready to enjoy your potato soup again, thaw it in the fridge first if you’re reheating it from frozen. Once it’s defrosted, put the potato soup in a microwave-safe dish and heat it on high for 1 minute (stir it after 30 seconds) or you can reheat on the stove by heating over medium heat and stirring every minute or so until heated through.
- Other recipes you can make with the rest of your package of bacon are Instant Pot Bacon Parmesan Spaghetti Squash and Instant Pot Next Level Bacon Mac.
More Instant Pot Potato Soup Recipes
Instant Pot Smoky Sausage, Potato and Kale Soup
A simple and flavorful soup with smoked paprika, smoked sausage, potatoes, kale, onions and garlic. This will quickly become your favorite soup!
Instant Pot Chicken Bacon Chowder
This chowder is definitely a party in your mouth. With corn, chicken, bacon, cream cheese, potatoes, carrots, red bell pepper and more it’s chock full of tastiness. You’re going to be saying “let’s make this again next week” once you try it.
Instant Pot Potato Cheese Soup
A simple but delicious cheesy potato soup that you can make at home in your Instant Pot! Similar to the recipe for potato cheese soup that you can order at Marie Callender’s.
Instant Pot Loaded Baked Potato Soup
Everything you love about baked potatoes in soup form…cheese, bacon, sour cream, green onions and potatoes. Basically a cheesy potato soup recipe that you can make in your electric pressure cooker.
Did you know you can filter the recipes on my website to search by meat type, IP or Crockpot, low carb, gluten free, etc.? Use the filter to find exactly what you are looking for.


Outback Loaded Potato Soup (Instant Pot or Crockpot)
- Prep Time: 20 minutes
- Cook Time: 5 minutes (plus 5 minute NPR)
- Total Time: 25 minutes
- Yield: 4–6 servings 1x
Description
A creamy potato, bacon and cheese soup just like the restaurant but you can make it at home!
Ingredients
- 4 ounces uncooked bacon, chopped (7–8 slices)
- 1 cup diced onion
- 3 carrots, peeled and sliced
- 1 1/2 cups chicken broth
- 1 1/2 pounds red potatoes, cut into cubes
- 2 tsp seasoned salt
- 6 Tbsp butter, melted
- 6 Tbsp flour
- 3 cups milk
- 4 ounces shredded sharp cheddar cheese (1 cup)
- Diced green onions, for topping
Instructions
Instant Pot Instructions:
- Turn Instant Pot to saute setting. When display says HOT add in the chopped bacon and cook until crispy. Use a slotted spoon to move bacon to a paper towel lined plate. Drain all but 2 Tbsp of the bacon grease.
- Add the carrots and onions into the bacon grease and saute for 4 minutes.
- Stir in the chicken broth and scrape bottom of pot so that nothing is sticking.
- Add in the potatoes and seasoned salt.
- Cover Instant Pot and secure the lid. Make sure valve is set to sealing. Set the soup button to 5 minutes. When time is up let pot sit for 10 minutes and then move valve to venting. Remove the lid.
- In a small bowl whisk together the melted butter and flour until smooth and creamy. Stir the mixture into the Instant Pot. Temper the milk by stirring a hot cup of soup into it. Then pour the milk mixture into the pot. Turn Instant Pot to saute setting. Let the soup thicken while you are stirring it.
- Once soup has thickened turn off the pot. Stir in the cheese and the bacon. Salt and pepper to taste.
- Ladle into bowls and top each bowl with a tablespoon of green onions. Eat and enjoy!
Slow Cooker Instructions:
- Heat a pan over medium high heat. Add in the chopped bacon and cook until crispy. Use a slotted spoon to move bacon to a paper towel lined plate. Drain all but 2 Tbsp of the bacon grease.
- Add the carrots and onions into the bacon grease and saute for 4 minutes. Add to the slow cooker.
- Add carrots, onions, broth, potatoes and seasoned salt into slow cooker.
- In a small bowl whisk together the melted butter and flour until smooth and creamy. Stir the mixture into the slow cooker.
- Cover slow cooker and cook on low for 6-8 hours or on high for 3-4 hours or until potatoes are fork tender.
- Temper the milk by stirring a hot cup of soup into it. Then pour the milk mixture into the slow cooker.
- Stir in the cheese and the bacon. Salt and pepper to taste.
- Ladle into bowls and top each bowl with a tablespoon of green onions. Eat and enjoy!
- Category: Soup
- Method: Instant Pot or Slow Cooker

*Karen Petersen is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.
Delicious and easy soup. My picky son loved it and asked for leftovers the next night. Definitely a keeper.
★★★★★
Thanks so much Jennifer! So glad you enjoyed it!
Can’t wait to try this one. Sounds so yummy. Love me some soup made with veggies sautéed in bacon drippings!! Will make it EXACTLY like your recipe states & I know it’ll be a winner. Thanks Karen for coming up with these ‘copycat’ recipes to help our budget & keep our taste buds happy, happy, happy! Will be back with stars & can pretty much promise it won’t be just one. ;-}
Thanks Kim! I know you’ll love it!!!
If I don’t have red potatoes, would it matter if I used Russets?
Thank you for your recipes! They have helped me to use our Instant Pot much more.
Yes that is fine. I would peel them though 🙂
What are your thoughts on using precooked bacon or bacon crumbles?
★★★★★
Definitely you could do that. There is flavor that comes from sauteeing the veg in the bacon fat though. So if you have any bacon fat on hand I’d still use that to saute the veg.