Steakhouse Potato Soup

Bacon fat is the secret weapon – using it for the roux instead of butter adds smoky depth to every spoonful. Velveeta melts smooth without breaking like real cheese might.

June Arthurs
September 12, 2025
jump to recipe

Ingredients

  • 8 bacon strips, diced
  • 4 cups cubed peeled potatoes
  • 1 medium carrot, grated
  • 1/2 cup chopped onion
  • 1 tbsp dried parsley flakes
  • 1/2 tsp Diamond Crystal kosher salt
  • 1/2 tsp black pepper
  • 1/2 tsp celery seed
  • 3 cups chicken broth
  • 3 tbsp all-purpose flour
  • 4 cups 2% milk
  • 10 ounces Velveeta, cubed
  • 2 green onions, thinly sliced

Render Bacon and Cook the Vegetables

Get a large saucepan or Dutch oven over medium heat and add the diced bacon. Cook, stirring occasionally, until it’s crisp; this usually takes ~8-10 minutes.

Use a slotted spoon to move the bacon to a paper towel-lined plate.

Leave the rendered fat in the pot.

Add the potatoes, grated carrot, and chopped onion to the pot.

Stir in the parsley, salt, pepper, and celery seed, then pour in the chicken broth.

Bring the mixture to a boil, then reduce the heat to a simmer.

Cover the pot and let it cook for ~10-15 minutes, or until the potatoes are tender when pierced with a fork.

Thicken the Soup and Serve

In a small bowl, whisk the flour and milk together until it’s completely smooth. Pour the milk mixture into the soup and bring it to a boil, stirring constantly.

Cook for about two minutes; you’ll notice it has thickened.

Stir in the cubed Velveeta and about three-quarters of the cooked bacon.

Keep stirring until the cheese is melted.

If you want, top it with the green onions and the rest of the bacon.

Steakhouse Potato Soup

Bacon fat is the secret weapon – using it for the roux instead of butter adds smoky depth to every spoonful. Velveeta melts smooth without breaking like real cheese might.
prep time15 minutes
cook time30 minutes
total time45 minutes

Ingredients

  • 8 bacon strips, diced
  • 4 cups cubed peeled potatoes
  • 1 medium carrot, grated
  • 1/2 cup chopped onion
  • 1 tbsp dried parsley flakes
  • 1/2 tsp Diamond Crystal kosher salt
  • 1/2 tsp black pepper
  • 1/2 tsp celery seed
  • 3 cups chicken broth
  • 3 tbsp all-purpose flour
  • 4 cups 2% milk
  • 10 ounces Velveeta, cubed
  • 2 green onions, thinly sliced

Instructions

  • Cook diced bacon in large Dutch oven over medium heat until crisp, 8-10 minutes.
  • Remove bacon with slotted spoon; reserve.
  • Add potatoes, carrot, onion, parsley, salt, pepper, celery seed, and broth to pot.
  • Bring to boil, reduce heat, cover and simmer until potatoes are tender, 10-15 minutes.
  • Whisk flour and milk until smooth, stir into soup.
  • Bring to boil, stirring constantly, cook 2 minutes until thickened.
  • Add Velveeta and 3/4 of bacon, stir until cheese melts.
  • Top with green onions and remaining bacon before serving.

Notes

Can be made ahead and reheated over low heat, stirring occasionally.