In a large pot, cook the ground beef over medium heat until fully browned. Break it up as it cooks. Once done, drain the grease and set the beef aside.
Add the butter to the same pot and let it melt. Stir in the chopped onion and shredded carrots. Cook until softened, about 5-7 minutes.
Stir in the garlic and flour, and cook for another 1-2 minutes, stirring constantly. This helps thicken the soup later.
Slowly add in the chicken broth and milk. Stir well.
Add the chopped potatoes, salt, pepper, basil, and parsley. Bring everything to a gentle boil, then reduce the heat and let it simmer for 12-15 minutes, or until the potatoes are fork tender.
Add in the cream cheese and shredded cheddar. Stir until completely melted and smooth.
Ladle into bowls and enjoy! We like to top ours with extra cheese or crumbled bacon if we have it on hand.