This Loaded Instant Pot Baked Potato Soup takes everything you love about a fully loaded baked potato (crispy bacon, melty cheddar, green onions, and sour cream) and folds it into a creamy, cozy soup made lightning-fast in the pressure cooker.

It’s rich, indulgent, and exactly the kind of meal that tastes like it took hours… but didn’t. Bonus: no oven, no baking, no potato drama.

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Why This Loaded Baked Potato Soup Works

The Instant Pot handles the slow part. Diced russets cook under pressure for 8 minutes and come out soft enough to fall apart when you stir. Russets are high in starch, so when you blend part of the pot, that starch thickens the soup on its own. You don’t need flour or a roux.

The flavor starts with the bacon. Cooking it right in the pot leaves behind fat and browned bits, and the onion and garlic soak all of that up. The dairy goes in last, after the pressure cooking is done. Milk, sour cream, and cheddar can turn grainy if they boil, so warming them gently on Sauté keeps the soup smooth.

Loaded Instant Pot Baked Potato Soup Ingredients

• 4 slices thick-cut bacon, chopped
• 1 tablespoon butter (optional, if bacon is lean)
• 1 small yellow onion, diced
• 2 cloves garlic, minced
• 2 pounds russet potatoes, peeled and diced
• 3 cups low-sodium chicken broth
• ½ teaspoon salt
• ¼ teaspoon black pepper
• ½ teaspoon smoked paprika (optional, for added depth)
• 1 cup whole milk
• ½ cup sour cream (or Greek yogurt)
• 1½ cups shredded sharp cheddar cheese
• Optional garnish: extra cheddar, sliced green onions, crumbled bacon, or chives

Easy Ingredient Swaps

Russets give the fluffiest texture. Yukon Golds work too and make a slightly denser, buttery soup. Low-sodium broth matters here because the bacon and cheddar both bring plenty of salt. If you only have regular broth, hold off on the salt and taste at the end.

Full-fat Greek yogurt can stand in for the sour cream. Half-and-half makes it richer than whole milk, and 2% is fine if you want it lighter. Skip skim milk, which makes the soup thin. Grate your cheddar from a block. Bagged shredded cheese has an anti-caking coating that can leave the soup gritty.

Kitchen Tool Tips

Instant Pot or electric pressure cooker
Cuts the cook time way down. Potatoes become tender in minutes without boiling or babysitting.

Immersion blender
Makes a creamy base right in the pot. Blend as much or as little as you like.

Heatproof spatula or wooden spoon
Great for scraping the browned bits after sautéing the bacon and onion for flavor-packed soup.

How to Make Loaded Instant Pot Baked Potato Soup

1. Set Instant Pot to Sauté. Cook chopped bacon until crispy, about 5 to 7 minutes. Remove and set aside. Drain excess fat, leaving 1 tablespoon in the pot.
2. Add butter if needed, then sauté onion for 3 to 4 minutes until softened. Stir in garlic and cook for 30 seconds.
3. Add potatoes, broth, salt, pepper, and smoked paprika. Stir to combine.
4. Lock the lid, set to Manual or Pressure Cook on high for 8 minutes. When finished, quick release the pressure.
5. Use an immersion blender to blend part of the soup until desired texture, part creamy and part chunky.
6. Stir in milk, sour cream, and cheddar. Switch to Sauté and warm gently until cheese is fully melted. Do not boil.
7. Taste and adjust seasoning. Ladle into bowls and top with your favorite baked potato garnishes.

Common Mistakes to Avoid

• Not scraping the bottom. Once the broth goes in, scrape the pot with a wooden spoon. Stuck bits can set off the Instant Pot burn warning.
• Uneven potato pieces. Aim for 1-inch cubes. Big chunks stay firm in the middle while small ones turn to mush.
• Boiling after the dairy goes in. If you see big bubbles, turn off Sauté and let the heat in the pot finish melting the cheese.
• Over-blending. Blend about half the pot in short bursts. Blending it all for too long can make potato soup gluey.

Variations

• Broccoli cheddar potato. Stir 2 cups of small broccoli florets into the hot soup after the pressure release and let them soften on Sauté for 3 to 4 minutes before adding the dairy.
• Ham and potato. Swap the bacon for 1 cup of diced cooked ham, browned in the butter.
• A little heat. Sauté a diced jalapeño with the onion and use pepper jack for half of the cheddar.

Nutritional Information

Per serving:

• Calories: 470
• Fat: 27g
• Carbohydrates: 35g
• Protein: 19g
• Fiber: 3g
• Sodium: 790mg

How to Serve

Garnish with shredded cheddar, crispy bacon, and sliced green onions for the full baked potato effect. Serve with crusty bread or a simple side salad to balance the richness.

Storage

Make ahead
Cook the bacon and dice the onion a day early. Diced potatoes can sit covered in cold water in the fridge overnight so they don’t brown. Drain them well before they go in the pot.

Fridge
Store in an airtight container for up to 4 days. Soup may thicken as it chills.

Freezer
Freeze without sour cream and cheese for best results. Add those after reheating. Store for up to 2 months.

Reheating
Reheat gently on the stovetop or microwave, stirring often. Add a splash of milk or broth to loosen as needed.

FAQ

Can I use red or Yukon Gold potatoes?

Yes, but russets are best for a fluffy, baked-potato-like texture.

Do I have to peel the potatoes?

Peeling gives a creamier finish, but you can leave skins on for a more rustic, fiber-rich version.

Can I make this vegetarian?

Yes! Use vegetable broth and skip the bacon. Add smoked paprika or a few drops of liquid smoke to keep the flavor bold.

How thick will it be?

It’s naturally thick from the potatoes. You can adjust texture by blending more or less, or thinning with extra milk or broth.

What’s the best cheese to use?

Sharp cheddar melts beautifully and adds flavor. Freshly grated cheese works best for a smooth finish.

Flavor Profile Breakdown

• Cheesy & creamy: A rich cheddar base with tangy sour cream
• Savory & smoky: Bacon, garlic, and paprika add layered flavor
• Comforting: Soft potatoes and smooth texture create full-on cozy vibes
• Balanced: Bright garnishes like scallions cut through the richness

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If you try this recipe, I’d love to hear your thoughts in the comments below.