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Brown the Italian sausage and set it aside.
In a large pot, sauté the carrots, onion, celery, garlic, parsley, and basil in olive oil until the onions are translucent, about 5 minutes.
Add the chicken broth and cubed potatoes, cover and cook until the potatoes are fork tender, about 15 minutes.
In a separate pan, melt the butter, then whisk in the flour. Gradually add the milk and heavy cream, cooking until thickened.
Add the shredded cheddar cheese to the milk mixture and stir until melted.
Add the cooked sausage back to the pot with the potato mixture, then stir in the cheese mixture.
Season with salt and pepper to taste.