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Butterscotch Cake with Caramel Frosting

Posted on June 17, 2025

Here’s a rich and indulgent Butterscotch Cake with Caramel Frosting recipe — perfect for birthdays, holidays, or any time you want a show-stopping dessert.


🍰 Butterscotch Cake with Caramel Frosting

Ingredients

For the Butterscotch Cake:
  • 2 ½ cups all-purpose flour

  • 1 tbsp baking powder

  • ½ tsp salt

  • ¾ cup unsalted butter (room temp)

  • 1 cup packed light brown sugar

  • ½ cup granulated sugar

  • 3 large eggs

  • 2 tsp vanilla extract

  • 1 cup butterscotch chips (melted and slightly cooled)

  • 1 cup whole milk

For the Caramel Frosting:
  • 1 cup unsalted butter

  • 1 cup packed brown sugar

  • ¼ cup heavy cream

  • ½ tsp salt

  • 3 cups powdered sugar (sifted)

  • 1 tsp vanilla extract


Instructions

Make the Cake:
  1. Preheat oven to 350°F (175°C). Grease and flour two 8-inch round cake pans.

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

  3. In a large bowl, beat butter, brown sugar, and granulated sugar until light and fluffy.

  4. Add eggs one at a time, beating well after each. Stir in vanilla.

  5. Mix in the melted butterscotch chips until well incorporated.

  6. Alternately add the dry ingredients and milk, beginning and ending with dry ingredients.

  7. Divide the batter between the pans. Bake 28–32 minutes or until a toothpick comes out clean.

  8. Cool in pans 10 minutes, then transfer to wire racks to cool completely.


Make the Caramel Frosting:
  1. In a saucepan, melt butter over medium heat. Add brown sugar and stir constantly until it begins to bubble.

  2. Slowly add cream and salt, stir and simmer for 2 minutes.

  3. Remove from heat and let cool for 10–15 minutes.

  4. Add vanilla and gradually beat in powdered sugar until smooth and fluffy.


To Assemble:

  1. Place one cake layer on a plate. Spread a generous layer of frosting on top.

  2. Add the second layer and frost the top and sides.

  3. Optional: Drizzle with caramel sauce and sprinkle with crushed toffee bits or sea salt.

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