Cheesy Instant Pot Loaded Baked Potato Soup

I didn’t grow up eating baked potato soup, but once I tried it at a restaurant years ago, I was hooked. All those loaded baked potato toppings—bacon, cheese, sour cream—in a creamy, comforting soup? Yes, please.

The problem was that making it on the stovetop always felt like too much work on a weeknight. You’d have to babysit the pot, stir constantly so nothing stuck to the bottom, and it took forever for the potatoes to get tender. Then I discovered I could make it in my Instant Pot, and everything changed. Now I can have that same cozy, filling soup on the table in about 30 minutes, with way less stirring and way less cleanup.

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What Kind of Potatoes Should I Use?

For this loaded baked potato soup, russet potatoes are your best bet since they have that classic baked potato flavor and texture we’re going for. They break down nicely while cooking, which helps thicken the soup naturally and gives it that creamy consistency. Yukon gold potatoes are another solid option if that’s what you have on hand – they’ll give you a slightly creamier, buttery taste. I’d avoid waxy potatoes like red potatoes for this recipe since they tend to hold their shape too well and won’t give you that same comforting, thick soup texture.

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Options for Substitutions

This soup is pretty forgiving when it comes to swaps, so here are some options if you need them:

• Cream of chicken soup: If you want to skip the canned soup, make a quick roux with 2 tablespoons butter and 2 tablespoons flour, then whisk in 1 cup of chicken broth and ½ cup heavy cream until smooth.
• Potatoes: Russet potatoes are ideal for their starchy texture, but Yukon golds work too. I’d avoid waxy red potatoes though, as they won’t break down and create that creamy consistency you want.
• Chicken broth: Vegetable broth works fine if you want to keep it vegetarian (just skip the bacon or use veggie bacon). You can also use water with a couple bouillon cubes in a pinch.
• Cheddar cheese: Sharp cheddar gives the best flavor, but you can use Colby, Monterey Jack, or even a Mexican cheese blend. Just make sure it’s freshly shredded – pre-shredded cheese has additives that can make the soup grainy.
• Milk: Whole milk is best, but 2% works too. For a richer soup, swap it with half-and-half or heavy cream. If you’re dairy-free, unsweetened almond or oat milk can work, though the flavor will be different.
• Bacon: Turkey bacon or pancetta are good substitutes. For a vegetarian version, try smoked paprika for that smoky flavor without the meat.

Watch Out for These Mistakes While Cooking

The biggest mistake when making Instant Pot potato soup is releasing the pressure too quickly without giving it a minute to settle, which can cause the soup to spray out of the valve – wait about 30 seconds after cooking finishes before turning the valve to quick release.

Another common error is adding the milk and flour mixture while the pot is still on sauté mode, which can cause the dairy to curdle or scorch on the bottom, so always turn off the heat first, stir in the mixture, then turn sauté back on to thicken.

Don’t skip whisking the flour into the milk before adding it to the soup, as dumping flour directly into the hot liquid will create lumps that are nearly impossible to smooth out.

Finally, add the cheddar cheese after turning off the heat and let it melt from the residual warmth – cooking cheese at high temperatures can make it grainy and separate instead of creating that smooth, creamy texture you’re after.

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What to Serve With Loaded Baked Potato Soup?

This soup is pretty hearty on its own, but I love serving it with a simple side salad to balance out all that creamy goodness. A basic mixed greens salad with ranch or a light vinaigrette works perfectly, or you could go with a classic Caesar salad if you want something a bit more filling. Crusty dinner rolls or warm biscuits are also great for dipping, and they help soak up the cheesy broth. If you’re feeding a crowd, consider setting up a soup bar with extra toppings like sour cream, more bacon bits, jalapeños, and chives so everyone can customize their bowl.

Storage Instructions

Store: This soup keeps really well in the fridge for up to 4 days in an airtight container. I actually think it tastes even better the next day once all the flavors have had time to hang out together. Just save the toppings like bacon and green onions to add fresh when you’re ready to eat.

Freeze: You can freeze this soup for up to 3 months, though dairy-based soups sometimes get a little grainy when thawed. If that happens, just give it a good stir or quick blend to bring it back together. Freeze it in portion-sized containers so you can grab just what you need.

Reheat: Warm it up on the stove over medium-low heat, stirring occasionally until heated through. You can also microwave individual portions, but go slow and stir every minute or so to keep it from getting too hot around the edges. Add a splash of milk or broth if it seems too thick after reheating.

Estimated Nutrition

Estimated nutrition for the whole recipe (without optional ingredients):

• Calories: 2350-2600
• Protein: 80-95 g
• Fat: 110-125 g
• Carbohydrates: 240-270 g

Ingredients

For the soup base:

• 1.5 tbsp butter (I like Kerrygold unsalted butter for this)
• 1 medium onion
• 4 cloves garlic
• 3 cups chicken broth (I use Swanson Less Sodium broth)
• 1 can cream of chicken soup
• 8 potatoes (peeled and cut into 1-inch chunks)
• 2.5 tsp salt
• 1/2 tsp black pepper
• 1/4 tsp smoked paprika

For the slurry:

• 1 cup milk (room temperature, about 70°F)
• 1 tbsp flour (I always use King Arthur all-purpose flour)
• 2 cups cheddar cheese (shredded from the block for better melting)

For the garnish:

• 6 slices bacon (cooked until crispy and crumbled)
• green onions
• cheddar cheese

Step 1: Prepare Ingredients and Aromatics

• 8 potatoes
• 1 medium onion
• 4 cloves garlic
• 6 slices bacon

Peel and cut potatoes into 1-inch chunks, then set aside.

Dice the onion and mince the garlic cloves.

Cook the bacon strips in a skillet until crispy, then crumble and set aside for garnish.

Having everything prepped before you start cooking ensures the Instant Pot process runs smoothly without interruption.

Step 2: Build the Flavor Base

• 1.5 tbsp butter
• 1 medium onion
• 4 cloves garlic

Set the Instant Pot to sauté mode and melt the butter.

Add the diced onion and cook for 3-4 minutes until softened and fragrant.

Stir in the minced garlic and cook for 1 minute longer, allowing the aromatics to release their flavors and create the foundation for the soup’s taste.

Step 3: Combine Soup Components and Pressure Cook

• 3 cups chicken broth
• 1 can cream of chicken soup
• 8 potatoes
• 2.5 tsp salt
• 1/2 tsp black pepper
• 1/4 tsp smoked paprika

Pour in the chicken broth and cream of chicken soup, stirring well to combine.

Add the prepared potatoes from Step 1, along with salt, black pepper, and smoked paprika.

Stir to distribute everything evenly, then close the lid and cook on high pressure for 10 minutes.

This cooking time will soften the potatoes while building a rich, cohesive base.

Step 4: Release Pressure and Thicken the Soup

• 1 cup milk
• 1 tbsp flour

Once the cooking time is complete, carefully perform a quick release of pressure.

While the pot is still on sauté mode, whisk together the milk and flour in a small bowl until smooth—this prevents lumps from forming in the soup.

Slowly pour this mixture into the hot soup while stirring constantly, then let it sauté for 4-5 minutes to thicken.

I always make sure the milk is at room temperature so it doesn’t shock the hot soup and curdle.

Step 5: Melt Cheese and Finish the Soup

• 2 cups cheddar cheese

Turn off the sauté function and stir in the shredded cheddar cheese, mixing until completely melted and incorporated.

For the best melting, I always shred the cheese from a block rather than using pre-shredded varieties, as they contain anti-caking agents that prevent smooth melting.

Taste and adjust seasoning if needed before serving.

Step 6: Serve with Toppings

• 6 slices bacon
• green onions
• cheddar cheese

Ladle the soup into bowls and garnish generously with the crumbled bacon from Step 1, sliced green onions, and additional shredded cheddar cheese for that classic loaded baked potato experience.

Cheesy Instant Pot Loaded Baked Potato Soup

Delicious Cheesy Instant Pot Loaded Baked Potato Soup recipe with step-by-step instructions.

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Prep Time 10 minutes mins

Cook Time 25 minutes mins

Total Time 35 minutes mins

Servings 6 servings

Calories 2475 kcal

Ingredients

  

For the soup base::

• 1.5 tbsp butter (I like Kerrygold unsalted butter for this)
• 1 medium onion
• 4 cloves garlic
• 3 cups chicken broth (I use Swanson Less Sodium broth)
• 1 can cream of chicken soup
• 8 potatoes (peeled and cut into 1-inch chunks)
• 2.5 tsp salt
• 1/2 tsp black pepper
• 1/4 tsp smoked paprika

For the slurry::

• 1 cup milk (room temperature, about 70°F)
• 1 tbsp flour (I always use King Arthur all-purpose flour)
• 2 cups cheddar cheese (shredded from the block for better melting)

For the garnish::

• 6 slices bacon (cooked until crispy and crumbled)
• green onions
• cheddar cheese

Instructions

 

• Peel and cut potatoes into 1-inch chunks, then set aside. Dice the onion and mince the garlic cloves. Cook the bacon strips in a skillet until crispy, then crumble and set aside for garnish. Having everything prepped before you start cooking ensures the Instant Pot process runs smoothly without interruption.
• Set the Instant Pot to sauté mode and melt the butter. Add the diced onion and cook for 3-4 minutes until softened and fragrant. Stir in the minced garlic and cook for 1 minute longer, allowing the aromatics to release their flavors and create the foundation for the soup's taste.
• Pour in the chicken broth and cream of chicken soup, stirring well to combine. Add the prepared potatoes from Step 1, along with salt, black pepper, and smoked paprika. Stir to distribute everything evenly, then close the lid and cook on high pressure for 10 minutes. This cooking time will soften the potatoes while building a rich, cohesive base.
• Once the cooking time is complete, carefully perform a quick release of pressure. While the pot is still on sauté mode, whisk together the milk and flour in a small bowl until smooth—this prevents lumps from forming in the soup. Slowly pour this mixture into the hot soup while stirring constantly, then let it sauté for 4-5 minutes to thicken. I always make sure the milk is at room temperature so it doesn't shock the hot soup and curdle.
• Turn off the sauté function and stir in the shredded cheddar cheese, mixing until completely melted and incorporated. For the best melting, I always shred the cheese from a block rather than using pre-shredded varieties, as they contain anti-caking agents that prevent smooth melting. Taste and adjust seasoning if needed before serving.
• Ladle the soup into bowls and garnish generously with the crumbled bacon from Step 1, sliced green onions, and additional shredded cheddar cheese for that classic loaded baked potato experience.