Cheddars Baked Potato Soup Recipe: Loaded With Cheese and Bacon Bites

This soup captures the essence of loaded baked potatoes in a creamy, comforting bowl. I’ve perfected the balance of cheddar sharpness and smoky bacon, creating a dish that’s rich without being heavy.

The base starts with russet potatoes, slow-cooked until tender, then blended into a velvety texture. Real cheddar melts seamlessly into the broth, while crispy bacon bits add a satisfying crunch in every spoonful.

What sets this apart is the attention to detail—sour cream swirls, green onion garnishes, and a hint of garlic for depth. It’s restaurant-quality warmth, made simple at home.

Serve with extra cheese and chives for the full experience. Every bite delivers that classic loaded potato flavor.

Ingredients for Cheddars Baked Potato Soup

Rich, cheesy, and packed with smoky bacon—just like your favorite loaded potatoes.

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The cheese is everything here. Sharp cheddar from a block melts smoothest—pre-shredded has anti-caking agents that make it grainy. Boar’s Head or Sargento are solid grocery store picks. For the potatoes, russets give that fluffy texture you want (red or Yukon Gold work in a pinch but are waxier). Look for thick-cut bacon at the butcher counter—it crisps up better than the paper-thin stuff.

No sharp cheddar? Colby-Jack at a 1:1 swap works but will be milder. Out of bacon? Smoked turkey bacon or even crumbled chorizo adds a similar smokiness. Need it gluten-free? Swap the flour for cornstarch at half the amount. Milk can be half-and-half for extra richness or 2% if that’s what you have (just don’t go lower than that).

This soup thickens as it cools. Leftovers keep 4-5 days in the fridge—reheat gently to avoid curdling. Freezes for 3 months (leave the bacon and garnishes off until reheating). Pro tip: under-salt slightly when making—cheese and bacon add a lot of salt as they sit.

Step-by-Step Instructions for Loaded Baked Potato Soup

Here’s my foolproof method for creamy, cheesy perfection with all the fixings.

Step 1: Cook and Crumble the Bacon

Start by cooking the 6 slices Thick-Cut Bacon in a large pot over medium heat until crispy. This usually takes about 8-10 minutes. You want the bacon to be deeply browned and crisp—this builds the foundation of flavor for your soup.

Once crispy, transfer the bacon to a paper towel-lined plate to drain. Reserve 2 tablespoons of the rendered bacon fat in the pot (discard the rest if needed). When cool enough to handle, crumble the bacon into bite-sized pieces—this adds texture and smoky depth to every spoonful.

Step 2: Sauté Aromatics and Thicken the Base

In the same pot with the reserved bacon fat, melt the 0.5 cup Unsalted Butter over medium heat. Add the finely diced Yellow Onion and cook for 5 minutes until softened and translucent. Stir in the minced Garlic Cloves and cook for 30 seconds until fragrant—don’t let it brown.

Sprinkle in the 0.25 cup All-Purpose Flour and whisk constantly for 1-2 minutes to cook out the raw flour taste. This creates a roux that will thicken your soup beautifully. The mixture should look like a thick paste and smell nutty.

Step 3: Simmer Potatoes Until Tender

Gradually whisk in the 4 cups Chicken Broth, ensuring no lumps remain. Add the 2 lb Russet Potatoes (peeled and diced), 1 tsp Salt, and 0.5 tsp Black Pepper. Bring to a boil, then reduce heat to medium-low and simmer for 15-20 minutes until the potatoes are fork-tender.

The potatoes should crumble easily when pierced with a fork. This is the moment to taste and adjust seasoning if needed—remember, the cheese and bacon will add more saltiness later.

Step 4: Blend and Enrich with Dairy

Using an immersion blender, purée the soup until smooth (or transfer in batches to a regular blender). Return to the pot and stir in the 1.5 cups Whole Milk and 2 cups Sharp Cheddar Cheese over low heat until the cheese melts completely and the soup is silky.

This step transforms the soup from good to extraordinary. The melted cheddar gives it that signature rich, velvety texture. Avoid high heat here—too much heat can cause the cheese to separate and make the soup grainy.

Step 5: Finish with Toppings and Serve

Remove from heat and stir in 0.5 cup Sour Cream until fully incorporated. Ladle into bowls and top each serving with the crumbled bacon, 0.5 cup Green Onions, and an extra sprinkle of shredded cheddar if desired.

The sour cream adds a tangy creaminess that balances the richness. Serve immediately while hot—the toppings will soften slightly but maintain their texture. Each bowl should be a perfect blend of creamy soup and crispy, salty, cheesy garnishes.

Creative Variations of This cheddars baked potato soup

Spicy Southwest Twist

Kick up the heat by adding 1 diced jalapeño with the onions and 1 tsp smoked paprika to the roux. Top with avocado slices and cilantro instead of green onions. This variation reminds me of those smoky coastal cookouts where I first fell in love with bold flavors. 🌶️

Loaded Veggie Version

Swap half the potatoes for 2 cups diced cauliflower and use vegetable broth instead of chicken. Add 1 cup shredded carrots for extra texture. The cauliflower blends seamlessly into the creamy base while keeping that loaded potato essence.

Smoky BBQ Style

Stir in 2 tbsp BBQ sauce (I love Stubb’s Original) at the end for a tangy twist. Top with crumbled blue cheese and extra bacon. This version tastes like a baked potato met a BBQ pit—perfect for local competitions.

Lighter Greek Yogurt

Replace the sour cream with 1 cup Greek yogurt for a protein boost. Add 1 tsp lemon zest to brighten the flavors. The yogurt gives the same creaminess but keeps it lighter, which I appreciate after a long ride along the coast. 💛

Cheesy Broccoli Addition

Fold in 2 cups steamed broccoli florets after blending for a hearty, veggie-packed version. The broccoli adds texture and pairs beautifully with the sharp cheddar. I often forage for wild herbs to sprinkle on top.

Slow Cooker Adaptation

Combine all ingredients except dairy in a slow cooker on low for 6-7 hours. Add milk, cheese, and sour cream in the last 30 minutes. This method lets the flavors meld deeply while you’re out exploring.

Frequently Asked Questions