Peel and dice squash into 1-inch pieces. Heat olive oil in a large saucepan over medium heat. Cook diced onion and minced garlic until fragrant.
Add butternut squash, diced carrots, vegetable broth, milk, salt, pepper, garlic powder and onion powder. Let simmer over medium heat for 35-40 minutes.
Blend soup in batches until smooth. Return to saucepan and let heat through.