Butterscotch Cake with Caramel Frosting

Indulge in the rich, buttery flavor of homemade Butterscotch Cake layered with a creamy Caramel Frosting. This decadent dessert features moist, tender cake infused with sweet butterscotch chips and topped with a luscious caramel buttercream that’s smooth, sweet, and perfectly balanced with a hint of salt. It’s the ultimate treat for birthdays, holidays, or any special occasion.

Why You’ll Love This Recipe

This Butterscotch Cake with Caramel Frosting is everything a layered cake should be: moist, flavorful, and beautifully frosted. Whether you’re baking for a celebration or just because, this cake brings comfort and indulgence in every slice.

• Deep, buttery butterscotch flavor

• Rich caramel frosting with a creamy finish

• Moist and tender cake texture

• Ideal for celebrations or everyday desserts

• Beautiful presentation

• Easy-to-follow instructions

• Balanced sweetness

• Kid and adult approved

• Make-ahead friendly

• Pairs perfectly with coffee or milk

Ingredients

(Tip: You’ll find the full list of ingredients and measurements in the recipe card below.)

For the cake:

• 2 cups all-purpose flour

• 1 cup butterscotch chips

• 1 cup (2 sticks) unsalted butter, softened

• 1½ cups granulated sugar

• 4 large eggs

• 1 cup milk

• 1 teaspoon vanilla extract

• 1 teaspoon baking powder

• ½ teaspoon salt

For the caramel frosting:

• 2 cups confectioners’ sugar

• ½ cup (1 stick) unsalted butter, softened

• ½ cup caramel sauce (store-bought or homemade)

• 1 teaspoon vanilla extract

• 2–3 tablespoons heavy cream

• Pinch of salt

Directions

1. Preheat oven to 350°F (180°C). Grease and flour two 9-inch round cake pans.

2. In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

3. In a large mixing bowl, cream the softened butter and granulated sugar until light and fluffy.

4. Beat in the eggs one at a time, mixing well after each addition.

5. Stir in the butterscotch chips, milk, and vanilla extract.

6. Gradually add the dry ingredients to the wet mixture and stir until just combined—do not overmix.

7. Divide the batter evenly between the prepared pans and smooth the tops.

8. Bake for 25–30 minutes, or until a toothpick inserted into the center comes out clean.

9. Let the cakes cool in the pans for 10 minutes, then transfer to a wire rack to cool completely.

To make the caramel frosting:
10. In a large bowl, beat the softened butter until smooth and creamy.
11. Gradually add the confectioners’ sugar, caramel sauce, vanilla extract, and a pinch of salt.
12. Add the heavy cream one tablespoon at a time until the frosting reaches your desired spreadable consistency.
13. Once the cake layers are completely cool, frost the top of one layer, place the second layer on top, and frost the top and sides of the cake with the remaining frosting.

Servings and timing

This recipe yields 12 servings.
Prep Time: 30 minutes
Cook Time: 30 minutes
Total Time: 1 hour

Variations

• Salted Caramel Topping: Sprinkle flaky sea salt over the frosted cake for a sweet-salty finish.

• Nutty Addition: Add ½ cup chopped walnuts or pecans into the cake batter for added crunch.

• White Chocolate Chips: Swap butterscotch chips for white chocolate for a milder flavor.

• Cupcake Style: Bake in lined muffin tins for 18–20 minutes for individual portions.

• Spiced Cake: Add ½ teaspoon cinnamon or nutmeg for a warm flavor profile.

• Cream Cheese Caramel Frosting: Substitute half the butter in the frosting with cream cheese for a tangy twist.

• Caramel Drizzle: Drizzle extra caramel sauce over the finished cake for extra indulgence.

• Toffee Crunch: Add crushed toffee bits between layers or on top of the cake.

• Sheet Cake Option: Bake in a 9×13-inch pan and frost directly in the pan.

• Mini Cake Layers: Use 6-inch pans to create a tall, elegant mini cake.

Storage/Reheating

Store the frosted cake in an airtight container at room temperature for up to 2 days, or refrigerate for up to 5 days.
If chilled, let the cake sit at room temperature for about 30 minutes before serving for the best texture.
To freeze, wrap slices or the whole cake tightly in plastic wrap and foil. Freeze for up to 2 months. Thaw in the refrigerator overnight.
Do not reheat the frosted cake—serve it chilled or at room temperature.

FAQs

Can I use store-bought caramel sauce?

Yes, a good-quality store-bought caramel sauce works well and saves time.

Can I make the cake ahead of time?

Absolutely. You can bake the layers a day in advance and frost them when ready to serve.

How do I keep the cake from being too sweet?

Use unsweetened caramel sauce or reduce the confectioners’ sugar slightly in the frosting to tone down the sweetness.

Can I freeze the cake?

Yes, the unfrosted or frosted cake can be frozen for up to 2 months. Wrap tightly in plastic wrap and foil.

Can I make cupcakes with this recipe?

Yes, divide the batter into cupcake liners and bake for 18–20 minutes. The frosting works perfectly on cupcakes too.

What if I don’t have butterscotch chips?

You can omit them or replace them with white chocolate or caramel chips for a different flavor.

Is this cake kid-friendly?

Yes, the flavors are rich but sweet, making it a hit with kids and adults alike.

Can I use salted butter instead?

Yes, but reduce the added salt in the recipe to balance the flavor.

How do I get smooth, creamy frosting?

Make sure the butter is fully softened and sift the confectioners’ sugar before mixing. Add cream slowly for a silky consistency.

Can I use this frosting on other cakes?

Definitely! This caramel frosting is delicious on chocolate, vanilla, or spice cakes as well.

Conclusion

Butterscotch Cake with Caramel Frosting is a standout dessert that delivers comfort and sophistication in every slice. With its rich flavor, moist crumb, and creamy frosting, it’s perfect for any occasion—from family dinners to elegant celebrations. Once you try this cake, it’s sure to become a favorite in your baking rotation.