Creamy, comforting, and loaded with tender potatoes, melted cheddar cheese, and crispy bacon, this Cheesy Potato Soup Recipe is everything a cozy bowl of homemade soup should be. A touch of ancho chili powder and red pepper flakes adds gentle warmth without making the soup overly spicy.

This is the kind of satisfying dinner that makes everyone eager to gather around the table. Serve it with warm crusty bread, homemade rolls, or a simple green salad for an easy meal the entire family will love.

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Spoonful of creamy cheesy potato soup with a tender potato, melted cheddar, crispy bacon and green onion.

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Why You’ll Love This Cheesy Potato Soup

There is so much to love about this easy homemade potato soup:

Rich, thick, and wonderfully creamy
Filled with tender russet potatoes
Made with plenty of sharp cheddar cheese
Topped with crispy bacon and fresh green onions
Easy to prepare in one pot
Perfect for chilly fall and winter evenings
Delicious for dinner, lunch, or casual entertaining

The combination of milk, heavy cream, sour cream, and cheddar creates a luxurious texture, while partially blending the potatoes thickens the soup naturally. Leaving some potato pieces whole gives every bowl a hearty, satisfying bite.

The Best Potatoes for Potato Soup

Russet potatoes are perfect for this recipe because their higher starch content helps make the soup thick and creamy. As they cook, they become soft enough to blend easily while still providing that classic baked-potato flavor.

Peel the potatoes and chop them into similarly sized bite-sized pieces. Keeping the pieces fairly uniform helps them cook evenly.

A comfortable, sharp vegetable peeler makes preparing a large batch of potatoes much quicker and easier. This is especially helpful for soups, mashed potatoes, and other cozy potato recipes.

Ingredients You’ll Need

Bacon

Cooking the bacon first gives you two valuable ingredients: crispy bacon for the soup and flavorful bacon grease for sautéing the onion. Reserve a little extra bacon for garnishing each bowl.

Russet potatoes

Russet potatoes break down beautifully and help create the soup’s creamy consistency. Eight or nine medium potatoes make this a substantial, hearty soup.

Sharp cheddar cheese

Sharp cheddar provides more pronounced flavor than mild cheddar. For the smoothest results, purchase a block of cheese and shred it yourself. Pre-shredded cheese often contains anti-caking ingredients that can prevent it from melting as smoothly.

Milk and heavy cream

Whole milk creates the creamy base, while heavy cream adds richness. Together, they make the soup indulgent without turning it into an overly heavy cheese sauce.

Sour cream

Sour cream adds a slight tang and gives the finished soup an extra layer of creaminess.

Ancho chili powder and red pepper flakes

These seasonings add warmth and depth that balance the richness of the potatoes, bacon, and cheese. The finished soup has a gentle kick rather than an intensely spicy flavor.

How to Make Cheesy Potato Soup

1. Cook the bacon

Cut the bacon into bite-sized pieces and place it in a large Dutch oven or soup pot. Cook over medium heat until the bacon is browned and crisp.

Transfer the bacon to a paper towel-lined plate and set it aside. Reserve two tablespoons of bacon grease in the pot.

A heavy cast-iron Dutch Oven is ideal for this recipe because it distributes heat evenly and gives you plenty of room to cook the bacon, sauté the vegetables, and simmer the soup in the same pot.

2. Sauté the onion and garlic

Add the butter and diced onion to the reserved bacon grease. Cook over medium heat for two to three minutes, or until the onion becomes tender and translucent.

Add the minced garlic and cook for approximately 30 seconds, stirring constantly. Garlic cooks quickly, so take care not to let it burn.

3. Make the creamy base

Sprinkle the flour evenly over the onion and garlic. Stir until the flour is smooth and no dry spots remain. Let it cook for about one minute to remove the raw flour taste.

Gradually pour in a small amount of chicken broth while whisking to work out any lumps. Add the remaining chicken broth, whole milk, and heavy cream.

4. Add the potatoes and seasonings

Add the chopped potatoes, salt, black pepper, ancho chili powder, and red pepper flakes. Stir everything together well.

Bring the soup to a gentle boil, then reduce the heat as needed to prevent the dairy from scorching. Cook for 15 to 20 minutes, stirring occasionally, until the potatoes are tender when pierced with a fork.

5. Add the cheese, sour cream, and bacon

Reduce the heat to low. Add the sour cream, shredded sharp cheddar cheese, and most of the cooked bacon, reserving some bacon for garnishing.

Stir gently until the cheese has melted and the soup is smooth and creamy. Avoid boiling the soup after adding the cheese, as excessive heat can cause the cheese to become grainy.

6. Blend part of the soup

Use an immersion blender to carefully blend the soup directly in the pot. Blend only part of it, leaving plenty of bite-sized potato pieces intact.

An immersion blender is especially useful here because you can control the texture without transferring hot soup to another container.

If you do not have an immersion blender, carefully transfer approximately five cups of soup to a standard blender. Blend on low, remembering that hot soup expands and creates steam. Do not overfill the blender, and vent the lid according to the manufacturer’s instructions.

You can also use a potato masher for a more rustic texture.

Return any puréed soup to the pot and allow everything to simmer gently for another 10 minutes.

Getting the Perfect Soup Consistency

The soup will continue to thicken slightly as it rests. If it becomes thicker than you prefer, stir in a small amount of chicken broth or whole milk until it reaches your desired consistency.

For an especially chunky soup, blend only a small portion. If you prefer a smoother bowl, blend a little more—but leave at least a few pieces of potato whole for texture.

Helpful Recipe Tips

Cut the potatoes into evenly sized pieces so they finish cooking at approximately the same time.
Shred the cheddar cheese from a block for smoother melting.
Keep the heat low after adding the cheese and sour cream.
Stir frequently while the soup simmers to prevent the creamy base from sticking.
Reserve some bacon, cheddar, and green onion for garnishing individual bowls.
Taste the finished soup before adding more salt because the bacon, broth, and cheddar all contribute saltiness.
For a milder soup, reduce or omit the red pepper flakes.

Can I Make This Soup Ahead of Time?

Yes. Cheesy potato soup can be made ahead and reheated when you are ready to serve it. The flavor may become even better after the ingredients have had time to mingle.

Allow the soup to cool before transferring it to an airtight container. Store it in the refrigerator for up to three or four days.

Reheat the soup slowly on the stovetop over low to medium-low heat, stirring frequently. Add a splash of milk or chicken broth if it has thickened in the refrigerator. Avoid bringing it to a hard boil.

Can You Freeze Cheesy Potato Soup?

Cream-based potato soups are best enjoyed fresh or refrigerated. Potatoes can develop a grainy texture after freezing, and dairy-based soups may separate when thawed.

If you do freeze it, thaw the soup overnight in the refrigerator and reheat it gently while stirring. A splash of fresh milk or cream may help bring the consistency back together.

What to Serve with Cheesy Potato Soup

This hearty soup is filling enough to serve as the main course. Pair it with:

Warm crusty bread
Soft homemade dinner rolls
Garlic bread
A simple garden salad
Roasted vegetables
A toasted sandwich

Cheesy Potato Soup Toppings

The toppings make this comforting soup feel extra special. Finish each bowl with:

Crispy crumbled bacon
Freshly shredded cheddar cheese
Sliced green onions
A spoonful of sour cream
Freshly cracked black pepper
A small pinch of red pepper flakes

Cozy Homemade Comfort in Every Bowl

This Cheesy Potato Soup Recipe brings together everything we love about comfort food: creamy potatoes, smoky bacon, sharp cheddar, and a warm, flavorful broth.

It is easy enough for a relaxed family dinner but delicious enough to serve when friends come over. Add your favorite toppings, bring some warm bread to the table, and enjoy a comforting homemade meal without making dinner complicated.