54th Street Potato Soup Recipe: Loaded With Cheesy Bacon Goodness

This restaurant-style potato soup delivers the rich, creamy texture and bold flavors you expect from a professional kitchen. I’ve refined this recipe to capture that signature 54th Street taste—loaded with potatoes, cheese, and crispy bacon in every spoonful.

The secret lies in a velvety base built with simple ingredients, then elevated with sharp cheddar and smoky bacon. A touch of sour cream adds the perfect tang to balance the richness, making it hearty yet well-rounded.

What you’ll get is a smooth, comforting soup with chunks of tender potatoes, melted cheese, and a garnish of green onions and bacon bits. It’s the kind of dish that warms you from the inside out.

Serve it with crusty bread or a simple salad for a meal that feels like a hug in a bowl.

Ingredients for 54th Street Potato Soup

Loaded with potatoes, cheese, and bacon for that signature restaurant-style flavor in every bite.

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The potatoes are the foundation here. Russets give you that fluffy, melt-in-your-mouth texture—don’t bother with waxy reds. Costco has great 5-pound bags if you’re making a double batch. For the bacon, thick-cut from any grocery store works, but I always grab Wright brand (the good stuff, not the pre-cooked crumbles). The cheddar needs to be sharp—Cabot or Tillamook are my go-tos for that bold flavor.

No bacon on hand? Turkey bacon works in a pinch, but honestly it’s not the same. Skip the pre-shredded cheese (it’s coated in anti-caking agents that make the soup grainy). Need to thicken without flour? Cornstarch at half the amount does the trick. If you’re out of sour cream, plain Greek yogurt adds the same tang. The broth can be vegetable if you want to lighten it up (but chicken gives that classic flavor).

This soup tastes even better the next day—3-4 days in the fridge, or freeze for 3 months. Store leftovers in airtight containers (don’t forget to leave some room for expansion). The garnishes are best added fresh, so keep the green onions and bacon separate until serving.

Step-by-Step Instructions for Loaded Potato Soup

Here’s how I build layers of flavor that make this soup irresistibly rich and satisfying.

Step 1: Cook and Crumble the Bacon

Start by cooking the 8 oz Bacon in a large pot over medium heat until crispy, about 8-10 minutes. I like to use thick-cut bacon for this soup—it holds up better and adds a meaty texture.

Using a slotted spoon, transfer the cooked bacon to a paper towel-lined plate to drain, then crumble it into small pieces. Leave the rendered bacon fat in the pot—this is pure flavor we’ll use to build the soup’s base.

Real talk: don’t skip this step. The bacon fat adds depth that you just can’t replicate with oil or butter alone.

Step 2: Sauté Vegetables Until Soft

In the same pot with the bacon fat, melt the 4 tbsp Unsalted Butter over medium heat. Add the 1 whole Yellow Onion and 2 whole Celery Stalks, both diced as specified. Cook for 5-6 minutes until the vegetables soften and the onion turns translucent.

Stir in the 3 cloves Garlic Cloves and cook for 30 seconds until fragrant. Add the 0.25 cup All-Purpose Flour, 1.5 tsp Salt, 0.5 tsp Black Pepper, and 0.5 tsp Dried Thyme, stirring constantly for 1-2 minutes to cook the flour and remove the raw taste.

This creates a roux that will thicken the soup beautifully. You’ll notice the mixture darken slightly—that’s your cue it’s ready for the next step.

Step 3: Simmer Potatoes Until Tender

Gradually pour in the 4 cups Chicken Broth while whisking to prevent lumps. Bring the mixture to a boil, then reduce heat to medium-low. Add the 2 lb Russet Potatoes (already peeled and cubed) and simmer for 15-20 minutes until the potatoes are fork-tender.

I check for doneness by piercing a potato cube with a fork—it should slide in easily with no resistance. The broth will thicken as the potatoes cook and release their starches.

Step 4: Finish with Cheese and Sour Cream

Reduce heat to low and stir in the 2 cups Sharp Cheddar Cheese until fully melted and smooth. This is the moment that matters: the cheese transforms the soup from good to extraordinary.

Remove the pot from heat and stir in the 1 cup Sour Cream until fully incorporated. Taste and adjust seasoning if needed, but remember the bacon and cheese already add saltiness.

Here’s the thing—sour cream adds a tangy creaminess that balances the richness of the cheese and bacon perfectly.

Step 5: Garnish and Serve

Ladle the soup into bowls and top with the crumbled bacon and 4 whole Green Onions, thinly sliced. The green onions add a fresh, bright contrast to the rich soup.

Let the soup sit for 2-3 minutes before serving—this allows the flavors to meld and the garnishes to warm slightly. Serve with crusty bread for dipping, and watch everyone go back for seconds.

Perfect Pairings for This Dish

Bread Pairings

I love serving this soup with a warm sourdough loaf—its crusty exterior and soft interior are perfect for soaking up the creamy broth. For something lighter, try garlic bread with 2 tbsp melted butter and 3 minced garlic cloves brushed on top. 🥖

Salad Companions

A crisp green salad with a tangy vinaigrette cuts through the richness beautifully. I toss 4 cups mixed greens with 2 tbsp balsamic vinegar and 3 tbsp olive oil. The acidity balances the soup’s creaminess.

Wine Pairings

For wine lovers, a glass of Chardonnay complements the cheesy, smoky flavors. I recommend Kendall-Jackson Vintner’s Reserve for its buttery notes. Alternatively, a light Pinot Grigio offers a refreshing contrast. 🍷

Beer Options

A crisp American lager like Budweiser or Coors Light pairs well without overpowering the soup. For craft beer fans, a wheat beer such as Blue Moon adds a citrusy note that enhances the dish.

Extra Toppings

Set out a toppings bar with shredded cheese, extra bacon bits, and diced avocado for customization. I also add jalapeños for a spicy kick. These extras let everyone personalize their bowl.

Comfort Meal Combo

Turn it into a full meal with a grilled cheese sandwich on the side. Use sharp cheddar and sourdough bread for the ultimate comfort food pairing. This combo is pure cozy satisfaction.

Frequently Asked Questions