Butterscotch Cake with Caramel Frosting

This Butterscotch Cake with Caramel Frosting is a rich, indulgent dessert that combines the warm, buttery flavor of butterscotch with a smooth, sweet caramel finish. Every bite is soft, moist, and loaded with old-fashioned charm. I love baking this cake for birthdays, holidays, or whenever I want to serve something unforgettable.

Why You’ll Love This Recipe

I love how the deep, caramelized sweetness of the butterscotch balances perfectly with the creamy caramel frosting. This cake feels both nostalgic and elegant—it’s easy enough for a casual get-together but impressive enough for a special celebration. The layers bake up tender and full of flavor, and the frosting is so good I sometimes catch myself eating it by the spoonful.

Ingredients

(Here’s a tip: Check out the full list of ingredients and measurements in the recipe card below.)

For the butterscotch cake:

• All-purpose flour

• Baking powder

• Baking soda

• Salt

• Unsalted butter

• Brown sugar

• Eggs

• Vanilla extract

• Buttermilk

• Boiling water

For the caramel frosting:

• Granulated sugar

• Heavy cream

• Unsalted butter

• Vanilla extract

• Powdered sugar

• Salt (optional, to balance sweetness)

Directions

1. I preheat the oven to 350°F (175°C), grease and flour two 8-inch round cake pans, and set them aside.

2. In a bowl, I whisk the flour, baking powder, baking soda, and salt together.

3. In a separate large bowl, I cream the butter and brown sugar until light and fluffy, then beat in the eggs one at a time followed by the vanilla.

4. I alternate adding the dry ingredients and buttermilk to the butter mixture, starting and ending with the dry mix.

5. I carefully stir in the boiling water until the batter is smooth, then divide it evenly between the pans.

6. I bake the cakes for 30–35 minutes, or until a toothpick inserted comes out clean. I let the layers cool completely before frosting.

To make the caramel frosting:

1. I cook granulated sugar in a saucepan over medium heat until melted and golden. I carefully whisk in heavy cream and butter until smooth and glossy.

2. I remove it from the heat, stir in vanilla and a pinch of salt, then let it cool slightly.

3. Once cooled, I beat in powdered sugar until I get a thick, spreadable frosting. If it firms up too much, I add a splash of cream to loosen it.

4. I frost the cooled cake layers generously, letting the caramel drip slightly down the sides if I want a rustic finish.

Servings and timing

This recipe makes a two-layer cake that serves 10–12 people. It takes about 25 minutes to prep, 35 minutes to bake, and additional time to cool and frost—so I usually plan for about 1.5 to 2 hours from start to finish.

Variations

• I sometimes add chopped toffee bits or butterscotch chips between the layers for extra texture.

• For a salted caramel twist, I increase the salt in the frosting or sprinkle sea salt on top.

• I’ve added finely chopped pecans or walnuts to the batter for a nutty version.

• When I want something extra festive, I top the finished cake with caramel drizzle and a handful of crushed caramel candies.

• I occasionally bake this in a bundt pan and pour the frosting over the top as a glaze.

Storage/Reheating

I store the cake covered at room temperature for up to 2 days or refrigerate it for up to 5 days. When chilled, I let slices come to room temperature before serving for the best texture. I’ve also frozen unfrosted layers and frosted them after thawing with great results.

FAQs

Can I use store-bought caramel for the frosting?

Yes, I sometimes use high-quality jarred caramel sauce if I’m in a hurry. I still beat it with butter and powdered sugar to create a frosting consistency.

What’s the difference between butterscotch and caramel?

Butterscotch is made with brown sugar and butter, while caramel typically uses white sugar. This cake gets its signature flavor from the richness of brown sugar.

Can I bake this as cupcakes?

Yes, I divide the batter into lined cupcake tins and bake at 350°F for 18–20 minutes. It makes about 24 cupcakes.

How do I prevent the frosting from becoming grainy?

I make sure the caramel is fully melted and smooth before adding powdered sugar. Letting it cool slightly also helps the texture stay creamy.

Can I make this cake ahead?

Definitely. I often bake the layers a day ahead and wrap them tightly. The frosting can be made in advance too, and I just whip it again before assembling.

Conclusion

This Butterscotch Cake with Caramel Frosting is pure dessert heaven. It’s rich, buttery, and layered with flavor in every bite. I love how easy it is to put together, yet it tastes like something from a bakery. Whether I’m serving it at a celebration or enjoying a slice with coffee, it’s always the sweet highlight of my day.

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