diff --git a/tests/baselines/reference/recursiveTypeComparison.js b/tests/baselines/reference/recursiveTypeComparison.js
new file mode 100644
index 0000000000..8195360de1
--- /dev/null
+++ b/tests/baselines/reference/recursiveTypeComparison.js
@@ -0,0 +1,21 @@
+//// [recursiveTypeComparison.ts]
+// Before fix this would take an exceeding long time to complete (#1170)
+
+interface Observable<T> {
+    // This member can't be of type T, Property<T>, or Observable<anything but T>
+    needThisOne: Observable<T>;
+    // Add more to make it slower
+    expo1: Property<T[]>; //  0.31 seconds in check
+    expo2: Property<T[]>; //  3.11 seconds
+    expo3: Property<T[]>; // 82.28 seconds
+}
+interface Property<T> extends Observable<T> { }
+
+var p: Observable<{}>;
+var stuck: Property<number> = p;
+
+
+//// [recursiveTypeComparison.js]
+// Before fix this would take an exceeding long time to complete (#1170)
+var p;
+var stuck = p;
diff --git a/tests/baselines/reference/recursiveTypeComparison.types b/tests/baselines/reference/recursiveTypeComparison.types
new file mode 100644
index 0000000000..5504de74d8
--- /dev/null
+++ b/tests/baselines/reference/recursiveTypeComparison.types
@@ -0,0 +1,44 @@
+=== tests/cases/compiler/recursiveTypeComparison.ts ===
+// Before fix this would take an exceeding long time to complete (#1170)
+
+interface Observable<T> {
+>Observable : Observable<T>
+>T : T
+
+    // This member can't be of type T, Property<T>, or Observable<anything but T>
+    needThisOne: Observable<T>;
+>needThisOne : Observable<T>
+>Observable : Observable<T>
+>T : T
+
+    // Add more to make it slower
+    expo1: Property<T[]>; //  0.31 seconds in check
+>expo1 : Property<T[]>
+>Property : Property<T>
+>T : T
+
+    expo2: Property<T[]>; //  3.11 seconds
+>expo2 : Property<T[]>
+>Property : Property<T>
+>T : T
+
+    expo3: Property<T[]>; // 82.28 seconds
+>expo3 : Property<T[]>
+>Property : Property<T>
+>T : T
+}
+interface Property<T> extends Observable<T> { }
+>Property : Property<T>
+>T : T
+>Observable : Observable<T>
+>T : T
+
+var p: Observable<{}>;
+>p : Observable<{}>
+>Observable : Observable<T>
+
+var stuck: Property<number> = p;
+>stuck : Property<number>
+>Property : Property<T>
+>p : Observable<{}>
+
diff --git a/tests/baselines/reference/recursiveTypeComparison2.errors.txt b/tests/baselines/reference/recursiveTypeComparison2.errors.txt
new file mode 100644
index 0000000000..ce6311c008
--- /dev/null
+++ b/tests/baselines/reference/recursiveTypeComparison2.errors.txt
@@ -0,0 +1,36 @@
+tests/cases/compiler/recursiveTypeComparison2.ts(13,80): error TS2304: Cannot find name 'StateValue'.
+
+
+==== tests/cases/compiler/recursiveTypeComparison2.ts (1 errors) ====
+    // Before fix this would cause compiler to hang (#1170)
+    
+    declare module Bacon {
+        interface Event<T> {
+        }
+        interface Error<T> extends Event<T> {
+        }
+        interface Observable<T> {
+            zip<U, V>(other: EventStream<U>, f: (a: T, b: U) => V): EventStream<V>;
+            slidingWindow(max: number, min?: number): Property<T[]>;
+            log(): Observable<T>;
+            combine<U, V>(other: Observable<U>, f: (a: T, b: U) => V): Property<V>;
+            withStateMachine<U, V>(initState: U, f: (state: U, event: Event<T>) => StateValue<U, V>): EventStream<V>;
+                                                                                   ~~~~~~~~~~~~~~~~
+!!! error TS2304: Cannot find name 'StateValue'.
+            decode(mapping: Object): Property<any>;
+            awaiting<U>(other: Observable<U>): Property<boolean>;
+            endOnError(f?: (value: T) => boolean): Observable<T>;
+            withHandler(f: (event: Event<T>) => any): Observable<T>;
+            name(name: string): Observable<T>;
+            withDescription(...args: any[]): Observable<T>;
+        }
+        interface Property<T> extends Observable<T> {
+        }
+        interface EventStream<T> extends Observable<T> {
+        }
+        interface Bus<T> extends EventStream<T> {
+        }
+        var Bus: new <T>() => Bus<T>;
+    }
+    
+    var stuck: Bacon.Bus<number> = new Bacon.Bus();
\ No newline at end of file
diff --git a/tests/baselines/reference/recursiveTypeComparison2.js b/tests/baselines/reference/recursiveTypeComparison2.js
new file mode 100644
index 0000000000..5844ff3be4
--- /dev/null
+++ b/tests/baselines/reference/recursiveTypeComparison2.js
@@ -0,0 +1,35 @@
+//// [recursiveTypeComparison2.ts]
+// Before fix this would cause compiler to hang (#1170)
+
+declare module Bacon {
+    interface Event<T> {
+    }
+    interface Error<T> extends Event<T> {
+    }
+    interface Observable<T> {
+        zip<U, V>(other: EventStream<U>, f: (a: T, b: U) => V): EventStream<V>;
+        slidingWindow(max: number, min?: number): Property<T[]>;
+        log(): Observable<T>;
+        combine<U, V>(other: Observable<U>, f: (a: T, b: U) => V): Property<V>;
+        withStateMachine<U, V>(initState: U, f: (state: U, event: Event<T>) => StateValue<U, V>): EventStream<V>;
+        decode(mapping: Object): Property<any>;
+        awaiting<U>(other: Observable<U>): Property<boolean>;
+        endOnError(f?: (value: T) => boolean): Observable<T>;
+        withHandler(f: (event: Event<T>) => any): Observable<T>;
+        name(name: string): Observable<T>;
+        withDescription(...args: any[]): Observable<T>;
+    }
+    interface Property<T> extends Observable<T> {
+    }
+    interface EventStream<T> extends Observable<T> {
+    }
+    interface Bus<T> extends EventStream<T> {
+    }
+    var Bus: new <T>() => Bus<T>;
+}
+
+var stuck: Bacon.Bus<number> = new Bacon.Bus();
+
+//// [recursiveTypeComparison2.js]
+// Before fix this would cause compiler to hang (#1170)
+var stuck = new Bacon.Bus();