If you’re on the hunt for a cozy dessert that feels like a warm hug, the Butterscotch Cake with Caramel Frosting Recipe is your new best friend. This luscious, buttery cake paired with a rich caramel frosting hits all the right notes of sweet and creamy, with that irresistible caramel depth that dances on your tongue. Perfect for any occasion where you want to impress but still keep it homey, this cake brings nostalgic flavors and a beautifully soft texture into one unforgettable bite.

Butterscotch Cake with Caramel Frosting Recipe - Recipe Image

Ingredients You’ll Need

Gathering the right ingredients is a joyful part of the baking process, especially with this Butterscotch Cake with Caramel Frosting Recipe. Each ingredient has a simple role but contributes massively to the final flavor and texture that makes this cake truly shine.

  • All-purpose flour: The sturdy foundation for our cake’s tender crumb and structure.
  • Baking powder and baking soda: These leaveners make sure your cake rises beautifully and stays light.
  • Salt: A pinch balances the sweetness and enhances all other flavors.
  • Unsalted butter, softened: Brings richness, moisture, and that perfect buttery taste.
  • Light brown sugar: Adds depth with its molasses undertones and keeps the cake moist.
  • Granulated sugar: Provides sweet balance and helps with the cake’s tender crumb.
  • Eggs: Essential for structure, moisture, and helping everything blend perfectly.
  • Vanilla extract: A subtle, sweet aroma that brightens the butterscotch flavor.
  • Buttermilk: Adds tang and acidity to keep the cake tender and flavorful.
  • Butterscotch chips (optional): A delightful burst of extra buttery, caramel sweetness in every bite.
  • Whole milk or heavy cream (for frosting): Ensures the caramel frosting is smooth and spreadable.
  • Powdered sugar (for frosting): Sweetens and thickens the frosting to create that classic creamy finish.
  • Salt (for frosting): Balances the sweetness and deepens caramel flavor.

How to Make Butterscotch Cake with Caramel Frosting Recipe

Step 1: Prep and Mix Dry Ingredients

Start by preheating your oven to 350°F. Grease and flour two 8-inch round pans and line the bottoms with parchment paper so your cakes come out clean and smooth. In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. This mix gives your cake the perfect rise and flavor foundation.

Step 2: Cream Butter and Sugars

In a large mixing bowl, cream the softened butter with both the brown sugar and granulated sugar until the mixture is light and fluffy—about three minutes. This step is crucial for incorporating air, which makes your cake beautifully tender and moist.

Step 3: Add Eggs and Vanilla

Next, add the eggs, one at a time, beating well after each addition. Then stir in the vanilla extract. These ingredients bring structure and rich flavor to your cake batter, combining to create that amazing butterscotch taste.

Step 4: Combine Dry Ingredients and Buttermilk

Alternately add your dry ingredient mixture and buttermilk to the butter and sugar blend in three stages, beginning and ending with the dry ingredients. This alternate mixing helps maintain the cake’s structure while ensuring the batter remains silky and smooth.

Step 5: Stir in Butterscotch Chips (Optional)

If you want pockets of toffee-like sweetness, gently fold in the butterscotch chips now. They add a subtle yet delightful surprise in every slice.

Step 6: Bake to Perfection

Divide the batter evenly between the prepared pans and smooth the tops. Place them in the oven and bake for about 28 to 32 minutes, or until a toothpick inserted in the center comes out clean. Let the cakes cool in the pans for 10 minutes before turning them onto wire racks to cool completely—this prevents breakage and keeps the layers perfect.

Step 7: Make the Caramel Frosting

While the cakes cool, start your caramel frosting by melting butter in a saucepan over medium heat. Stir in the brown sugar and cook for two minutes, keeping it moving constantly so it doesn’t burn. Add milk and salt, then bring to a gentle boil. Remove from heat and allow to cool slightly, then stir in vanilla. Gradually beat in sifted powdered sugar until the frosting is smooth, thick, and spreadable. Adjust thickness with a splash of milk if needed.

Step 8: Frost and Assemble

Once your cakes are completely cool, generously frost the layers and assemble. This frosting is rich and creamy, perfectly complementing the tender butterscotch cake beneath.

How to Serve Butterscotch Cake with Caramel Frosting Recipe

Butterscotch Cake with Caramel Frosting Recipe - Recipe Image

Garnishes

Adding garnishes enhances both the flavor and presentation. Toasted pecans or chopped walnuts sprinkle delicious texture and nutty goodness atop the frosting. A drizzle of homemade caramel sauce brings extra shine and a flavor punch that your guests will swoon over. A tiny pinch of flaky sea salt on top balances the sweetness flawlessly.

Side Dishes

This cake is a showstopper on its own but pairs beautifully with certain sides. Serve with a scoop of vanilla ice cream or a dollop of lightly sweetened whipped cream for a luscious contrast. Fresh berries or a simple berry compote add a bright, tangy note that cuts through the richness perfectly.

Creative Ways to Present

Thinking beyond the classic layer cake? Try turning this recipe into cupcakes for easy individual servings. Or assemble into a trifle with layers of cake chunks, caramel sauce, whipped cream, and pecans. For a rustic twist, use a single thick cake layer and top with thick caramel swirls and plenty of chopped nuts for an inviting finish.

Make Ahead and Storage

Storing Leftovers

You can keep your butterscotch cake fresh for up to 3 days by storing it in an airtight container at room temperature or in the refrigerator if your home is warm. Just be sure to cover it well to prevent the frosting from drying out and to keep the caramel flavor vibrant.

Freezing

If you want to save some for later, this cake freezes beautifully. Wrap each unfrosted layer tightly in plastic wrap, then in foil, and freeze for up to 2 months. When ready to enjoy, thaw in the refrigerator overnight, then frost as usual for fresh-from-the-oven taste.

Reheating

While cake is typically best enjoyed at room temperature, you can gently warm slices in the microwave for about 10 seconds to bring out the flavors without melting the frosting too much. This is especially nice if you serve it alongside ice cream or other chilled sides.

FAQs

Can I use regular milk instead of buttermilk in this Butterscotch Cake with Caramel Frosting Recipe?

Yes, you can substitute regular milk mixed with a tablespoon of lemon juice or vinegar to mimic buttermilk’s acidity, which helps tenderize the cake and activate the leavening agents. Just let the mixture sit for 5 minutes before adding.

Is it necessary to add the butterscotch chips in the cake batter?

The butterscotch chips are optional but highly recommended. They melt slightly while baking, creating little gooey pockets of butterscotch magic. Skip them if you prefer a more uniform texture, but they definitely elevate this recipe.

Can I make the caramel frosting ahead of time?

Absolutely! You can make the frosting a day ahead and keep it in an airtight container in the fridge. Before spreading, let it come to room temperature and give it a good stir or quick whip with a mixer to bring back that perfect creamy texture.

How do I prevent my cake from sticking to the pans?

Greasing, flouring, and lining the pans with parchment paper as described in the recipe ensures a clean release. This simple step is worth the extra effort for perfectly shaped and smooth cake layers every time.

Can I add a touch of spice to this Butterscotch Cake with Caramel Frosting Recipe?

Yes! Adding a teaspoon of ground cinnamon or a pinch of nutmeg to the dry ingredients complements the caramel and butterscotch flavors wonderfully and gives the cake a subtle warmth, perfect for fall or holiday seasons.

Final Thoughts

There’s something truly special about the Butterscotch Cake with Caramel Frosting Recipe that makes baking it feel like sharing a sweet moment with friends and family. Its comforting flavors, silky frosting, and tender crumb make it a dessert you’ll find yourself coming back to again and again. Go ahead, give it a try—your kitchen and your taste buds will thank you!

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Butterscotch Cake with Caramel Frosting Recipe

5 Stars 4 Stars 3 Stars 2 Stars 1 Star 3.9 from 40 reviews
  • Author: Mariam
  • Prep Time: 25 minutes
  • Cook Time: 30 minutes
  • Total Time: 55 minutes
  • Yield: 12 servings
  • Category: Dessert
  • Method: Baking
  • Cuisine: American
  • Diet: Vegetarian

Description

A rich and indulgent Butterscotch Cake with smooth Caramel Frosting, perfect for fall or any special occasion. This American classic features tender layers infused with butterscotch chips and a luscious homemade caramel frosting to delight your taste buds.


Ingredients

Scale

For the Cake:

  • 2 1/2 cups all-purpose flour
  • 2 teaspoons baking powder
  • 1/2 teaspoon baking soda
  • 1/2 teaspoon salt
  • 3/4 cup unsalted butter, softened
  • 1 cup packed light brown sugar
  • 1/2 cup granulated sugar
  • 3 large eggs, room temperature
  • 1 tablespoon vanilla extract
  • 1 cup buttermilk, room temperature
  • 1/2 cup butterscotch chips (optional)

For the Caramel Frosting:

  • 1/2 cup unsalted butter
  • 1 cup packed light brown sugar
  • 1/4 cup whole milk or heavy cream
  • 1/2 teaspoon salt
  • 2 cups powdered sugar, sifted
  • 1 teaspoon vanilla extract


Instructions

  1. Preheat and prepare pans: Preheat the oven to 350°F. Grease and flour two 8-inch round cake pans, then line the bottoms with parchment paper to prevent sticking.
  2. Mix dry ingredients: In a medium bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt to evenly incorporate leavening agents and seasoning.
  3. Cream butter and sugars: In a large mixing bowl, beat the softened unsalted butter with light brown sugar and granulated sugar until the mixture is light and fluffy, about 3 minutes. This ensures a tender cake crumb.
  4. Add eggs and vanilla: Add eggs one at a time, beating well after each addition to incorporate air, then mix in the vanilla extract for flavor.
  5. Combine dry ingredients and buttermilk: Alternate adding the flour mixture and buttermilk to the wet ingredients in three additions, starting and ending with the dry ingredients. Gently mix until just combined to avoid overmixing.
  6. Optional butterscotch chips: Fold in the butterscotch chips if using, to add bursts of sweet butterscotch flavor throughout the cake.
  7. Divide and bake: Evenly divide the batter between the prepared pans and smooth the tops. Bake for 28 to 32 minutes, or until a toothpick inserted into the center comes out clean.
  8. Cool the cakes: Let the cakes cool in their pans for 10 minutes. Then, carefully turn them out onto wire racks to cool completely before frosting.
  9. Make caramel frosting: Melt butter in a saucepan over medium heat. Stir in the brown sugar and cook for 2 minutes, stirring constantly to prevent burning.
  10. Add milk and salt: Pour in the milk and salt, bring the mixture to a gentle boil, then remove it from heat and allow it to cool slightly. Stir in the vanilla extract for added depth.
  11. Incorporate powdered sugar: Gradually beat in sifted powdered sugar until smooth and spreadable. If the frosting is too thick, adjust with a splash of milk carefully.
  12. Assemble and frost: Spread the caramel frosting evenly over the cooled cake layers and assemble as desired. Add extra caramel drizzle or toppings if preferred.

Notes

  • For extra flavor, drizzle additional caramel sauce over the top of the cake.
  • You can bake the cake a day ahead—wrap the layers tightly in plastic wrap and frost the next day for best results.
  • This cake pairs beautifully with toasted pecans or a sprinkling of sea salt flakes to balance the sweetness.

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