Caramel Butterscotch Cake brings together rich brown sugar and creamy butter for a decadent dessert that’s perfect for celebrations. The layers bake up tender and fragrant, then get slathered with homemade caramel frosting. This showstopper comes together in about an hour, making it ideal for birthdays or any occasion that calls for something sweet and impressive.
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You’re Going to Adore This Cake
- Big, Impressive Flavor – It’s a rich baked treat with butterscotch frosting that tastes like a celebration.
- Surprisingly Simple – My step-by-step instructions make this fluffy cake with caramel sauce drizzle totally doable.
- Family-Favorite Texture – Everyone loves the moist dessert with creamy caramel frosting and melty chips.
- Crowd-Pleasing Versatility – Perfect for birthdays, holidays, or just because you deserve a slice.
What You’ll Need for Your Caramel Butterscotch Cake
For the Cake
- 2 cups all-purpose flour – The base of this tender, fluffy cake.
- 1 1/2 cups granulated sugar – Sweetens everything perfectly—don’t skimp!
- 1 cup unsalted butter, softened – Softened is key for that light, airy texture.
- 4 large eggs, at room temperature – Room temperature blends smoothly into the batter.
- 1 cup whole milk, at room temperature – Also at room temp to keep the batter cohesive.
- 1 teaspoon vanilla extract – Pure is best for the richest flavor.
- 2 teaspoons baking powder – Helps the cake rise beautifully.
- 1/2 teaspoon salt – Balances the sweetness and enhances flavor.
- 1 cup butterscotch chips – Melty pockets of caramel-like goodness.
For the Topping
- 1 cup caramel sauce – Go for a good-quality store-bought or homemade.
- 1/2 cup heavy cream, chilled – Chilled whips up into the dreamiest layer.
- 2 tablespoons powdered sugar – Sweetens the whipped cream just right.
Getting Your Caramel Butterscotch Cake Timeline
Hi friends, Amanda here! I know how busy life gets, so I love that this homemade Caramel Butterscotch Cake feels special without taking over your entire day.
You’ll spend about 20 minutes getting everything ready, which is perfect for fitting in between school drop-off and starting work. Then, the cake bakes for about 30 minutes, filling your kitchen with the most amazing warm, buttery scent. In right around 50 minutes total, you’ll have a gorgeous homemade cake using butterscotch and caramel ready to impress.
This timing makes it an easy family dinner dessert or a fantastic weekend baking project. For more quick and delightful bakes, check out my classic Vanilla Cake recipe!
Caramel Butterscotch Cake
Ingredients
- 2 cups all-purpose flour
- 1 1/2 cups granulated sugar
- 1 cup unsalted butter softened
- 4 large eggs at room temperature
- 1 cup whole milk at room temperature
- 1 tsp vanilla extract
- 2 tsp baking powder
- 1/2 tsp salt
- 1 cup butterscotch chips
- 1 cup caramel sauce for topping
- 1/2 cup heavy cream chilled
- 2 tbsp powdered sugar
Equipment
- electric mixer
- oven
- 9-inch round cake pans
- spatula
Method
- Preheat your oven to 350°F and grease two 9-inch round cake pans with butter, then line the bottoms with parchment paper for easy removal.
- In a large mixing bowl, cream together 1 cup softened butter and 1 1/2 cups granulated sugar with an electric mixer on medium speed until the mixture becomes light and fluffy, about 3-4 minutes.
- Beat in 4 eggs one at a time, mixing well after each addition, then stir in 1 teaspoon vanilla extract until fully incorporated.
- Whisk together 2 cups flour, 2 teaspoons baking powder, and 1/2 teaspoon salt in a separate bowl, then gradually add to the wet ingredients alternating with 1 cup milk, beginning and ending with the dry ingredients.
- Fold in 1 cup butterscotch chips gently with a spatula until evenly distributed, then divide the batter equally between the prepared pans and smooth the tops.
- Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean, then cool the cakes in their pans on a wire rack for 10 minutes before turning them out to cool completely.
- Whip 1/2 cup chilled heavy cream with 2 tablespoons powdered sugar using an electric mixer on high speed until stiff peaks form, then spread between the cooled cake layers.
- Drizzle 1 cup caramel sauce generously over the top of the assembled cake, allowing it to drip down the sides for a decorative finish.
Nutrition
Private Notes
Tried this recipe?
Let us know how it was!Thoughtful Twists for Special Diets
I love sharing recipes that everyone can enjoy, and this Caramel Butterscotch Cake is wonderfully adaptable. If you’re sugar-conscious or looking for a lower glycemic option, a few simple swaps can make a big difference. I often use a natural sweetener like a stevia blend for the cake batter, which works beautifully. For the frosting, a high-quality sugar-free caramel sauce is a fantastic option for a diabetic-friendly version that doesn’t skimp on flavor.
Another great tip is to focus on portion size. A smaller slice of this moist Caramel Butterscotch Cake can be just as satisfying, especially when paired with a cup of coffee or tea. If you’re exploring more sugar-alternative baking, the principles in my Almond Caramel Crunch Cookie recipe are a great place to start!
My Pro-Tips for the Perfect Caramel Butterscotch Cake
After making this celebration dessert cake more times than I can count, I’ve picked up a few tricks to make it truly foolproof. Here are my favorite tips for the best results every single time.
- Flavor Boost: For an extra layer of warmth, add a pinch of cinnamon to the dry ingredients. It pairs magically with the butterscotch. If you love that flavor combo, you’ll adore my Caramel Apple Cheesecake.
- Dietary Tweak: To make it a bit lighter, you can swap half the all-purpose flour for white whole wheat flour. The texture remains wonderfully soft.
- Texture Trick: Toss the butterscotch chips in a tablespoon of the measured flour before folding them in. This little step helps prevent them from sinking to the bottom of the pan during baking.
- Storage Smarts: This cake stores best covered at room temperature for a day. For longer storage, keep it in the fridge, but let it come to room temp before serving for the best flavor and texture, much like my Red Velvet Cake.
A Quick Look at Nutrition
While this moist Caramel Butterscotch Cake is certainly a treat, it’s helpful to understand what you’re enjoying. A slice provides energy from carbohydrates and a bit of protein from the eggs and milk. The butter contributes to the rich, satisfying flavor we all love.
For a more detailed understanding of baking science and ingredients, the resource on Silky Salted Caramel Buttercream offers some great insights. If you’re looking for other celebratory options, my German Chocolate Cake is another beloved favorite. And for a fruit-filled alternative, this Berry Chantilly Cake is always a hit.
How to Make a Lighter Version
I totally get it—sometimes you want all the flavor with a slightly lighter touch. The good news is that this recipe is quite forgiving! For a less sweet version, you can gently reduce the sugar in the cake by 1/4 cup without majorly affecting the texture.
You can also use a light whipped topping instead of the heavy cream for the filling. If you’re avoiding dairy, a plant-based butter and milk alternative work well, too. For more inspiration on creative and delicious desserts, my Caramel Apple Puppy Chow is a fun, snackable treat. And if you’re a chocolate lover, my classic Chocolate Cake can also be adapted in similar ways.
How to Serve Your Caramel Butterscotch Cake with Style
This cake is a star on its own, but a little presentation goes a long way! I love serving it on a beautiful cake stand for birthdays. A light dusting of powdered sugar or a few extra butterscotch chips on top makes it look professionally decorated.
I remember making this for my daughter’s “half-birthday” last year—it’s become our silly little tradition. She loves the sweet, gooey caramel drizzle. A cup of cold milk or a hot coffee is the perfect pairing to balance the richness. For a full dessert spread, it pairs wonderfully with my simple Cherry Cheesecake Ice Cream. Another fantastic combination is serving it alongside my Butterscotch Pecan Cookies for a true butterscotch extravaganza.
Common Caramel Butterscotch Cake Mistakes to Sidestep
Even the best bakers can run into a hiccup, so here’s how to avoid the common pitfalls and ensure your butterscotch frosting cake turns out perfectly.
- Using Cold Ingredients: Bringing your eggs, milk, and butter to room temperature is non-negotiable. Cold ingredients don’t incorporate as well, leading to a denser cake. Plan ahead!
- Overmixing the Batter: Once you add the flour, mix just until combined. Overmixing develops gluten and can make the cake tough instead of tender and fluffy.
- Underbaking or Overbaking: Ovens vary, so trust the toothpick test. A few moist crumbs are okay, but wet batter means it needs more time. For more baking fundamentals, the guide on Making Butterscotch Sauce from Scratch has great tips. Also, check out my Pineapple Cake for another moist cake that uses a similar testing method.
- Frosting a Warm Cake: Be patient! If the cake layers are even slightly warm, the whipped cream frosting will melt and slide right off. Let them cool completely on a wire rack.
I learned that last one the hard way at a family reunion—let’s just say we had a very “deconstructed” cake that year! For a savory break from baking, my Caramelized Onion Pasta is a wonderful, reliable dinner.
How to Store Your Leftover Cake
If you’re lucky enough to have leftovers, storing them properly keeps the cake delicious. I always cover the cut side of the cake with plastic wrap directly against the surface to keep it from drying out. It will stay fresh at room temperature for about 2 days.
For longer storage, you can refrigerate it for up to 5 days. Just let it sit out for 30 minutes before serving to take the chill off. This cake also freezes beautifully! Wrap individual slices tightly in plastic wrap and then foil, and freeze for up to 3 months. It’s like a little gift to your future self. For another treat that stores well, my Butterfinger Caramel Crunch Bars are perfect for the freezer. And if you’re planning a party, my Candy Carnival Caramel Apples are a great make-ahead option.
Try This Cozy Recipe Celebration Today
I truly hope you feel inspired to bake this Homemade Caramel Butterscotch Cake. It’s one of those recipes that fills your home with warmth and ends with happy smiles around the table. There’s nothing quite like the pride of serving a dessert you made from scratch.
Remember, baking is about joy, not perfection. So put on some music, preheat that oven, and create a little sweetness today. I’d love to hear how it turns out! For more baking adventures, be sure to explore my other recipes like this decadent Caramel Butterscotch Cake, the festive Caramel Apple Cheesecake, and the fun, snackable Caramel Apple Puppy Chow.
More Irresistible Caramel & Butterscotch Treats
If you loved this cake, you’re going to obsess over these other cozy recipes. Each one brings its own unique twist on sweet, comforting flavors.
Butterscotch Pecan Cookies – Chewy, nutty cookies packed with butterscotch chips for a perfect snack.
Almond Caramel Crunch Cookie – A delightful crunchy cookie with rich caramel and toasted almonds.
Butterfinger Caramel Crunch Bars – An easy, no-bake bar that tastes just like the classic candy bar.
Candy Carnival Caramel Apples – A fun, festive treat that’s perfect for a party or a cozy night in.
Your Caramel Butterscotch Cake Questions Answered
What’s the difference between caramel cake and butterscotch cake?
The main difference comes down to the sugar. Traditional caramel cake is made by caramelizing white granulated sugar, which gives it a deeper, slightly bitter-sweet flavor. A butterscotch cake, like this one, uses brown sugar as its base, which provides a warmer, richer molasses-like flavor. Our Caramel Butterscotch Cake recipe beautifully combines elements of both for the best of both worlds.
Which is better, butterscotch or caramel?
“Better” is really a matter of personal taste! Butterscotch tends to be richer and have a more buttery, brown sugar flavor, while caramel is often deeper and sweeter. I love them equally, but for a cozy, warm dessert, the butterscotch flavor in this cake is hard to beat. It’s all about what you’re craving.
What is the difference between caramel and butterscotch and dulce de leche?
This is a great question! Caramel is made from heated white sugar. Butterscotch is made with brown sugar and butter. Dulce de leche is completely different—it’s made by slowly cooking sweetened milk until it caramelizes, resulting in a creamy, caramel-colored sauce. It’s a process similar to the one I use for the sauce in my Caramel Apple Cheesecake.
What flavors pair well with butterscotch?
Butterscotch is incredibly versatile! It pairs wonderfully with nuts like pecans and walnuts, fruits like apples and bananas, and warm spices like cinnamon and nutmeg. Chocolate is also a surprisingly delicious pairing, offering a lovely contrast to the sweetness. For a fantastic example, try my Butterscotch Pecan Cookies.
