Heat olive oil in a large pot over medium heat. Sauté the chopped onion for about 4-5 minutes until translucent.

Add minced garlic and sauté for an additional minute.

Incorporate chopped tomatoes and vegetable broth. Season with salt and pepper, then simmer for about 20 minutes.

Blend the soup until smooth using an immersion blender. Stir in heavy cream and heat gently.

Combine flour, baking powder, salt, and shredded cheese in a medium bowl. Gradually mix in water until a dough forms.

Drop spoonfuls of dumpling mixture into the simmering soup and cover. Steam for 10-15 minutes until fluffy.

Serve the soup hot with fluffy dumplings, garnished with fresh basil or additional cheese.