Creamy Old Fashioned Potato Soup with Sweet Caramelized Onions

There are certain smells that transport you right back to your grandmother’s kitchen, and for me, one of those is the simple, comforting aroma of potatoes simmering on the stove. My grandma made the most wonderful, no-fuss potato soup. It was creamy, hearty, and exactly what you needed on a chilly evening. For years, I made her recipe exactly as she wrote it down, never changing a thing. It was a perfect bowl of nostalgia, a direct link to my childhood.

But as I got more adventurous in my own kitchen, I started to wonder. Could I keep that classic comfort while adding a little something extra, a layer of flavor that would make it my own? I wanted to create an old fashioned potato soup that still felt like a warm hug but had a sophisticated twist that could impress at a dinner party.

My experiments began. I tried different herbs, various cheeses, and even a swirl of sour cream. They were all good, but they didn’t quite hit the mark. The breakthrough came on a night I was making French onion soup. The incredible, savory-sweet aroma of slowly caramelized onions filled my kitchen, and a lightbulb went off. That deep, rich flavor was exactly what my potato soup needed. It was the missing piece.

By taking the time to slowly caramelize sweet onions and swapping the standard cheddar for a sharp white cheddar, the soup transformed. It went from simply comforting to truly unforgettable. This is that recipe, a tribute to my grandma with a little bit of my own kitchen magic stirred in.

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Why This Old Fashioned Potato Soup Recipe Works

Potato soup is a cornerstone of comfort food for a reason. Its history is rooted in practicality and necessity, a humble dish designed to feed a family using inexpensive, readily available ingredients. For generations, families have relied on this simple soup to stretch their budgets and fill hungry bellies, making it a beloved classic across the world. Its popularity endures because it’s deeply satisfying, easy to make, and feels like a warm hug in a bowl. It’s the kind of food that tastes like home, no matter where you grew up.

While the traditional version is wonderful in its simplicity, this recipe elevates the classic by introducing a secret weapon: deeply caramelized onions. Most recipes simply call for sautéing onions until they are soft and translucent. That’s perfectly fine, but taking the extra 25 to 30 minutes to slowly caramelize them builds an incredible depth of flavor that you just can’t achieve otherwise. The natural sugars in the onions develop into a rich, sweet, and savory jam-like consistency that infuses the entire soup with a complex, almost French-inspired taste.

This single technique transforms the soup base from good to absolutely exceptional. It complements the earthy potatoes and creamy base perfectly, creating layers of flavor that make each spoonful more interesting than the last. We also use sharp white cheddar, which provides a tangy counterpoint to the sweetness of the onions, creating a beautiful balance. This isn’t just a potato soup, it’s a thoughtful reimagining of a classic, where one simple but powerful technique makes all the difference. It works because it respects the comforting nature of the original while adding a touch of elegance that makes it truly special.

Ingredients for Old Fashioned Potato Soup

The magic of this recipe lies in using simple, high-quality ingredients and letting them shine. While the list might look familiar, the specific choices and the way we use them are what set this soup apart. Each component plays a vital role in building the layers of flavor that make this the best old fashioned potato soup you’ll ever taste.

The undisputed star of this version is the 2 large sweet onions. This is our twist. Using sweet onions like Vidalia or Walla Walla is key, as they have a higher sugar content that allows them to caramelize beautifully, developing a deep, jammy sweetness that standard yellow onions can’t quite match. Don’t rush this step. The slow caramelization is what makes the soup truly special. For the potatoes, Yukon Golds are my go-to. Their naturally buttery texture and waxy consistency mean they hold their shape when cubed but also blend into a wonderfully creamy base without becoming gummy like Russets sometimes can. Quality dairy also makes a big difference, so I recommend using whole milk and heavy cream for the richest, most luxurious texture.

• 6 slices of thick-cut bacon, chopped: Thick-cut bacon provides more flavor and a meatier texture for the garnish.
• 2 large sweet onions, thinly sliced: This is our key ingredient for that deep, savory-sweet flavor base.
• 4 tablespoons unsalted butter: Unsalted butter allows you to control the salt level perfectly.
• 2 cloves garlic, minced: Adds a foundational aromatic flavor.
• 2 pounds Yukon Gold potatoes, peeled and cut into 1/2-inch cubes: The best choice for a creamy yet textured soup.
• 4 cups chicken or vegetable broth: Use a good quality, low-sodium broth to control the final seasoning.
• 1 ½ cups whole milk: Provides creaminess without being overly heavy.
• 1 cup heavy cream: Adds that final touch of luxurious richness.
• 1 teaspoon fresh thyme leaves: Fresh thyme offers an earthy, slightly floral note that pairs beautifully with potatoes.
• Salt and freshly ground black pepper to taste: Essential for bringing all the flavors together.
• ½ cup shredded sharp white cheddar cheese, plus more for garnish: The sharpness cuts through the richness and adds a wonderful tang. Shredding your own from a block is always best for melting.
• 2 tablespoons fresh chives, finely chopped, for garnish: A bright, fresh finish.

Step-by-Step Instructions For Making Old Fashioned Potato Soup

Making this soup is more about technique than complicated steps. We are going to build layers of flavor from the very beginning, starting with the bacon and ending with the perfect creamy finish. Grab a heavy-bottomed pot or a Dutch oven, as their ability to distribute heat evenly is crucial for caramelizing the onions without scorching them. Let’s get started.

Step 1: Crisp the Bacon

In your Dutch oven or large pot, cook the chopped bacon over medium heat. You want to render the fat and get the bacon pieces nice and crispy. This can take about 8 to 10 minutes. Once they’re perfectly browned, use a slotted spoon to transfer the bacon to a plate lined with paper towels. Leave about one tablespoon of that flavorful bacon grease in the pot. That liquid gold is the foundation of our soup’s flavor.

Step 2: Caramelize the Onions

Add the butter to the pot with the reserved bacon fat and let it melt over medium-low heat. Now, add your thinly sliced sweet onions and a small pinch of salt, which helps draw out moisture. Here comes the most important part: patience. Cook the onions slowly, stirring every few minutes, for a full 25 to 30 minutes. You’re not just softening them, you’re coaxing out their sugars. They should be a deep golden brown, soft, and sweet. Don’t be tempted to crank up the heat to speed this up, as you’ll just burn them.

Step 3: Add Aromatics

Once the onions are beautifully caramelized, stir in the minced garlic and fresh thyme leaves. Cook for just one more minute, stirring constantly, until you can smell that wonderful garlic fragrance. This quick step toasts the aromatics and ensures their flavor blooms throughout the soup without the garlic becoming bitter.

Step 4: Simmer the Potatoes

Now, add your cubed Yukon Gold potatoes and the broth to the pot. Stir everything together, scraping up any delicious browned bits from the bottom. Increase the heat to bring the mixture to a simmer, then immediately reduce the heat to low to maintain a gentle, steady simmer. Let the potatoes cook for 15 to 20 minutes. You’ll know they’re ready when they are very tender and can be easily pierced with a fork.

Step 5: Blend to Perfection

This step is all about texture. For a rustic, chunky-creamy soup, use an immersion blender and pulse just a few times directly in the pot. You want to leave plenty of potato chunks intact. If you don’t have an immersion blender, carefully transfer about two cups of the soup to a regular blender. Be sure to vent the lid to let steam escape, and blend until smooth before returning it to the pot. This method gives you a creamy base while preserving that satisfying texture.

Step 6: Finish with Cream and Cheese

With the heat on low, stir in the whole milk, heavy cream, and the shredded sharp white cheddar cheese. Continue to stir gently until the cheese is completely melted and the soup is warmed through. It is crucial that you do not let the soup boil after adding the dairy, as it can cause it to curdle. This final step is what gives the soup its luxurious, velvety finish.

Step 7: Season and Serve

Give the soup a final taste and season generously with salt and freshly ground black pepper until the flavors pop. Ladle your delicious old fashioned potato soup into warm bowls. Garnish generously with the crispy bacon you set aside earlier, an extra sprinkle of sharp white cheddar, and a scattering of fresh chives for a pop of color and fresh flavor.

How To Serve Old Fashioned Potato Soup

A bowl of this creamy, rich potato soup is practically a complete meal on its own, but the right accompaniments can turn it into a truly memorable dining experience. Serving it is all about complementing its hearty texture and deep flavors. Whether you’re setting up a cozy weeknight dinner or hosting friends, there are plenty of ways to present this soup that feel both special and effortless.

My favorite way to serve this soup is with a topping bar, especially if we have guests. It allows everyone to customize their bowl just the way they like it. Alongside the reserved bacon, extra cheese, and chives, you can add bowls of sour cream or Greek yogurt, crunchy croutons, or even some hot sauce for those who like a little kick. For a simple and classic pairing, you absolutely cannot go wrong with some crusty bread for dipping. A warm baguette, a slice of sourdough, or even some homemade cornbread is perfect for sopping up every last drop from the bowl.

Here are a few more ideas to get you started:

• Serve in Bread Bowls: For a rustic and impressive presentation, hollow out small, round loaves of sourdough or pumpernickel bread and ladle the hot soup directly inside. It’s a dish and an edible bowl all in one.
• Pair with a Fresh Salad: To lighten up the meal, serve a smaller portion of the soup alongside a crisp green salad tossed with a sharp vinaigrette. The acidity of the dressing cuts through the richness of the soup beautifully.
• Add a Gourmet Garnish: Elevate the look and taste with a drizzle of high-quality olive oil or truffle oil just before serving. A sprinkle of smoked paprika or a few crispy fried onions on top also adds wonderful texture and flavor.
• Make it a Soup and Sandwich Combo: Nothing says comfort like a classic soup and sandwich duo. Pair a cup of this potato soup with a grilled cheese sandwich made with extra sharp cheddar or a simple turkey and Swiss on rye.

No matter how you choose to serve it, be sure to ladle it into pre-warmed bowls. It’s a small step that makes a big difference in keeping this wonderfully creamy soup hot from the first spoonful to the last.

How To Store & Reuse Old Fashioned Potato Soup Leftovers

One of the best things about making a big pot of soup is having leftovers for the next day. I often think this old fashioned potato soup tastes even better after the flavors have had a chance to meld overnight in the refrigerator. Proper storage is key to ensuring your leftovers are just as delicious as the day you made them. Because this is a dairy-based soup, you’ll want to take a little extra care.

First, always let the soup cool down before storing it. Leaving a large, hot pot of soup on the counter for too long can be unsafe, so I like to speed up the process by placing the pot in an ice bath in my sink. Once it has cooled to room temperature, transfer the soup to airtight containers. I prefer using smaller, individual-sized containers, which makes reheating for a quick lunch much easier. The soup will keep well in the refrigerator for up to four days.

When it comes to reusing leftovers, simple reheating is the most common option. Here are the best ways to store and reheat your soup:

• Refrigerating: Store in an airtight container in the refrigerator for 3 to 4 days. Keep any garnishes like bacon, fresh chives, or extra cheese separate and add them after reheating to maintain their texture and freshness.
• Freezing: Dairy-based soups can sometimes separate or become grainy upon thawing. If you plan to freeze it, you can make the soup base up to the point before adding the milk, cream, and cheese. Freeze the potato and onion base, and then add the dairy and cheese when you reheat it. If you must freeze the finished soup, know that the texture might change slightly. It will still be delicious, but perhaps not as silky smooth.
• Reheating on the Stovetop: This is my preferred method. Gently warm the soup in a saucepan over low heat, stirring occasionally to prevent it from scorching on the bottom. Do not let it boil, as high heat can cause the dairy to separate. If the soup has thickened in the fridge, you can add a splash of milk or broth to reach your desired consistency.
• Reheating in the Microwave: Place the soup in a microwave-safe bowl and cover it loosely to prevent splatters. Heat it in 60-second intervals, stirring in between each one, until it is warmed through. This gentle, incremental heating helps prevent the dairy from curdling.

Leftover soup can also be a fantastic base for another meal. You could use it as a creamy sauce for a quick potato gratin or even pour it over baked potatoes for a doubly delicious treat.

Substitutions & Variations For Old Fashioned Potato Soup

While I believe this recipe is perfect as is, one of the joys of home cooking is making a dish your own. This old fashioned potato soup is wonderfully versatile and can be easily adapted to suit your dietary needs, taste preferences, or simply what you have on hand in your pantry. Feel free to use these suggestions as a starting point for your own kitchen creativity.

The most impactful changes often come from simple swaps. For example, if you don’t have Yukon Gold potatoes, you can use red potatoes, which also hold their shape well. Russet potatoes can be used, but they tend to break down more, which will result in a thicker, less chunky soup, so you may want to blend it less. The cheese is another area ripe for experimentation. Smoked Gouda would add a wonderful smoky dimension, while a spicy pepper jack could give the soup a welcome kick of heat.

Here are some other substitutions and fun variations to try:

• Make it Vegetarian: This is an easy swap! Simply omit the bacon and use a full 5 tablespoons of butter or olive oil to caramelize the onions. Substitute the chicken broth with a high-quality vegetable broth. To replicate some of the smoky flavor from the bacon, you could add a pinch of smoked paprika.
• Add More Vegetables: Feel free to bulk up the soup with more veggies. Add a cup of chopped carrots and celery along with the onions to create a classic mirepoix base. Stirring in some corn, peas, or chopped kale at the end of the cooking time adds both nutrients and texture.
• Leek and Potato Variation: For a classic flavor combination, substitute one of the large sweet onions with two large leeks (white and light green parts only, well-rinsed and sliced). Leeks provide a milder, more delicate onion flavor that is absolutely delicious.
• Make it Lighter: If you’re looking to reduce the fat and calories, you can substitute the heavy cream with evaporated milk or half-and-half. The soup won’t be quite as rich, but it will still be delightfully creamy.
• Spice it Up: For those who enjoy a bit of heat, add a pinch of red pepper flakes along with the garlic or stir in a finely diced jalapeño with the onions. A dash of your favorite hot sauce at the end can also do the trick.

Don’t be afraid to play around with the garnishes as well. A dollop of pesto, some crunchy roasted chickpeas, or even some garlic croutons can add a whole new dimension to this classic comfort dish.

5 FAQs About Old Fashioned Potato Soup

Here are some straightforward answers to the most common questions I receive about this potato soup recipe.

What are the best potatoes to use for old fashioned potato soup?

This is a fantastic question because the type of potato you choose really does have a significant impact on the final texture of your soup. For this specific recipe, I strongly recommend using a waxy potato variety, with Yukon Gold being my absolute top choice. Yukon Golds have a naturally creamy, buttery texture and a lower starch content compared to other potatoes. This means they hold their shape well when boiled, which is perfect for creating a soup that is both creamy and has delightful, tender chunks of potato throughout. They don’t become mealy or fall apart completely, which helps avoid a gummy or pasty consistency.

Other great waxy options include red potatoes or fingerling potatoes. Like Yukon Golds, they maintain their integrity during cooking, so they are excellent if you enjoy a more rustic, chunky soup. On the other end of the spectrum are starchy potatoes like Russets or Idaho potatoes. These are the potatoes you’d typically use for baked potatoes or mashed potatoes. They have a fluffy, dry texture and will break down almost completely when simmered in broth. If you prefer a completely smooth, velvety soup with no chunks at all, Russets can be a good choice, but you must be careful not to overwork them when blending, as their high starch content can make the soup gluey.

How can I make my old fashioned potato soup thicker without using flour?

Thickening potato soup without a traditional flour roux is actually very easy, as the potatoes themselves are a natural thickening agent. The primary method used in this recipe is to simply blend a portion of the soup. The starches released from the blended potatoes will naturally thicken the entire pot. If, after blending, you find the soup is still thinner than you’d like, you can simply blend a little more of it. An immersion blender makes this incredibly easy to control, you can just give it a few more pulses until you reach that perfect consistency.

Another great method is the “potato slurry” trick. Before you start cooking, set aside one small potato. Grate it finely using a box grater and let it sit in a small bowl. Near the end of the cooking time, if your soup needs more body, stir this grated potato into the pot. The tiny pieces will cook almost instantly and release their starch, thickening the soup beautifully without affecting the flavor. You could also add a tablespoon or two of instant mashed potato flakes near the end of cooking, they dissolve and work as an instant thickener. Finally, simmering the soup uncovered for an extra 10 to 15 minutes will allow some of the excess liquid to evaporate, naturally concentrating and thickening it.

Can I make this potato soup in a slow cooker?

Absolutely! This recipe adapts wonderfully to the slow cooker, making it a fantastic option for a busy day. You will still want to do the initial flavor-building steps on the stovetop, as a slow cooker cannot properly crisp bacon or caramelize onions. So, in a skillet, cook your bacon until crisp, set it aside, and then use the bacon fat and butter to slowly caramelize your onions. This initial step is non-negotiable for achieving the deep flavor of this specific recipe.

Once your onions are caramelized and you’ve added the garlic and thyme, transfer the onion mixture to your slow cooker. Add the cubed potatoes and broth. Give it a good stir, cover, and cook on low for 6 to 8 hours or on high for 3 to 4 hours, until the potatoes are very tender. About 30 minutes before serving, use an immersion blender to partially blend the soup right in the slow cooker. Then, stir in the warm milk, heavy cream, and shredded cheese until everything is melted and combined. Using warm milk and cream helps keep the temperature up so it serves nice and hot. Keep it on the “warm” setting until you’re ready to serve, then garnish as usual.

Is it possible to make this old fashioned potato soup vegetarian or vegan?

Yes, you can easily adapt this recipe to be vegetarian, and with a few more thoughtful swaps, it can be made vegan as well. For a vegetarian version, the steps are very simple. First, omit the bacon. To make up for the fat, use a total of 5 to 6 tablespoons of unsalted butter or a combination of butter and olive oil for caramelizing the onions. Second, be sure to use vegetable broth instead of chicken broth. The rest of the recipe, including the milk, cream, and cheese, remains the same. The result is a rich, creamy, and deeply flavorful vegetarian potato soup.

To make the recipe fully vegan, you’ll need a few more substitutions. Start by omitting the bacon and using olive oil or vegan butter to caramelize the onions. Use vegetable broth. For the potatoes and aromatics, the recipe is the same. The main change comes with the dairy. Instead of whole milk and heavy cream, use a full-fat, unsweetened plant-based milk and cream. A combination of oat milk for the base and a thick, full-fat canned coconut milk or a commercial vegan heavy cream substitute for richness works very well. For the cheese, use your favorite brand of shredded vegan cheddar. Stir it in at the end until melted. Garnish with vegan bacon bits or toasted nuts and fresh chives.

Why did my old fashioned potato soup turn out grainy?

A grainy texture in a creamy soup is disappointing, and there are usually two main culprits, both related to technique. The first, and most common, reason is that the dairy was overheated. Milk, and especially cream, can curdle or “break” if it’s boiled or heated too quickly. This is why the instructions are very specific about adding the milk, cream, and cheese over low heat and warming it gently without ever letting it come to a boil. When the proteins in the dairy denature from high heat, they clump together, creating that unpleasant grainy texture. To avoid this, always keep the heat low and stir constantly after adding the dairy products.

The second possible cause relates to the type of potato used and how it was blended. If you use a very starchy potato, like a Russet, and over-blend it, especially in a high-powered blender, the starches can become overworked and create a gluey or sometimes grainy texture. This is less of an issue with waxy potatoes like Yukon Golds. When blending, whether with an immersion blender or a traditional one, aim to pulse just until you reach the desired consistency. Blending for too long or at too high a speed can damage the starch molecules. By using the right potatoes and being gentle with your dairy and blending, you can ensure a silky-smooth and creamy soup every time.

Try These Recipes Next

If you enjoyed this cozy and comforting soup, I have a few other potato soup recipes I think you’ll absolutely love.

• Vegan Smoked Potato Soup: A wonderfully smoky and rich soup that’s completely plant-based, using smoked paprika and liquid smoke for incredible flavor.
• Slow Cooker Potato, Ham & Leek Soup: A classic combination of ham and leeks made incredibly easy in the slow cooker. It’s the perfect set-it-and-forget-it meal.
• Jam’s Potato Bacon Soup: Another take on the classic potato and bacon pairing, this one is extra hearty and loaded with savory goodness.

Each one offers a unique twist on a classic, and I hope they bring as much warmth to your table as they do to mine.