Place bacon pieces in a large Dutch Oven or soup pot over medium heat and cook until bacon is crisp and browned.
Remove bacon pieces and set aside, leaving the fat in the pot.
Add butter and chopped onion and cook over low heat until onions are tender and browned slightly.
Add garlic and cook until fragrant (about 30 seconds).
Sprinkle the flour over the ingredients in the pot and stir until smooth (use whisk if needed).
Add chopped potatoes to the pot along with chicken broth, milk, heavy cream, salt, pepper, and ancho chili powder. Stir well.
Cook low until potatoes are tender when pierced with a fork.
Add sour cream and reserved bacon pieces, stir well.
Allow soup to cook for 15 for minutes before serving.
Top with additional sour cream, bacon, cheddar cheese, or chives. Enjoy!
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