Cheesy Philly Cheesesteak Soup with Beef and Peppers

This hearty soup captures all the flavors of a classic Philly cheesesteak in a comforting bowl. Tender chunks of beef stew meat are simmered in rich beef broth with sautéed onions, mushrooms, and bell peppers, then finished with a creamy blend of Velveeta and cheddar cheese. Perfect for cold evenings or when you're craving the iconic sandwich flavors in soup form. The homemade croutons add a satisfying crunch that mimics the crusty roll of a traditional cheesesteak.
Ingredients
- 1 tablespoon vegetable oil
- 2 pounds beef stew meat, or cut up chuck roast
- 1 tablespoon kosher salt
- 1 teaspoon coarse ground black pepper
- 1 yellow onion, chopped
- 8 cups beef broth
- 2 cups mushrooms, sliced
- 2 green bell peppers, diced
- 8 ounces Velveeta cheese
- 1 cup cheddar cheese, cubed
- homemade croutons, recipe belowstore-bought croutons1:1convenience
any variety works
Instructions
- 1
Add oil to a large pot or dutch oven on high heat
- 2
Season beef with salt and pepper
- 3
Add beef to the pot and sear on all sides
- 4
Add in the onions and cook until translucent
- 5
Add in beef broth and bring to a boil, then reduce to low heat
- 6
Cook uncovered
- 7
Add in the mushrooms and bell pepper and cook
- 8
Stir in the Velveeta and cheddar cheese until smooth
- 9
Serve immediately topped with fresh homemade croutons
Tips
Cut your own chuck roast into chunks for more tender, flavorful meat than pre-cut stew meat
Don't skip the searing step - it creates a rich base flavor for the entire soup
Add cheese gradually while stirring to prevent clumping and ensure smooth melting
Good to Know
Refrigerate up to 3 days. Cheese may separate when reheated - whisk in a splash of broth to restore smoothness.
Can make base soup without cheese up to 2 days ahead. Add cheese when reheating to serve.
Ladle into bowls while hot and top with croutons just before serving to maintain crunch.
Common Mistakes
Don't add cheese while soup is boiling or it will curdle
Sear beef in batches if needed to avoid overcrowding and steaming
Substitutions
any variety works
FAQ
Can I use a different type of cheese?
Yes, try provolone or American cheese for authentic Philly flavor, though melting may not be as smooth as Velveeta.
How long will this keep in the refrigerator?
Store up to 3 days refrigerated. The cheese may separate when reheated, so whisk in broth to restore smoothness.
Can I freeze this soup?
Cheese-based soups don't freeze well as they tend to separate and become grainy when thawed.