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Butterscotch Cake with Caramel Frosting

Posted on May 31, 2025
Here’s a rich and indulgent recipe for Butterscotch Cake with Caramel FrostingΒ  moist, buttery cake with a deep butterscotch flavor, topped with silky, sweet caramel frosting. Perfect for special occasions or when you’re craving a decadent dessert.


🍰 Butterscotch Cake with Caramel Frosting

πŸŽ‚ Makes: One 2-layer (8-inch or 9-inch) cake

⏱ Prep Time: 30 mins | Bake Time: 25–30 mins | Cooling & Frosting: 1 hour


🧾 Ingredients

For the Butterscotch Cake:

  • 2 1/2 cups all-purpose flour

  • 2 1/2 tsp baking powder

  • 1/2 tsp baking soda

  • 1/2 tsp salt

  • 3/4 cup unsalted butter, softened

  • 1 cup light brown sugar, packed

  • 1/2 cup granulated sugar

  • 3 large eggs, room temperature

  • 1 1/2 tsp vanilla extract

  • 1/2 cup butterscotch chips, melted and slightly cooled

  • 1 cup whole milk or buttermilk

For the Caramel Frosting:

  • 1 cup light brown sugar, packed

  • 1/2 cup unsalted butter

  • 1/4 cup milk or heavy cream

  • 1/4 tsp salt

  • 2–2Β½ cups powdered sugar, sifted

  • 1 tsp vanilla extract


πŸ‘©β€πŸ³ Instructions

πŸ‘‰ Make the Butterscotch Cake:

  1. Preheat & Prep:

    • Preheat oven to 350Β°F (175Β°C).

    • Grease and flour two 8-inch or 9-inch round cake pans.

  2. Dry Ingredients:

    • In a bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.

  3. Cream Butter & Sugar:

    • In a large mixing bowl, cream the butter, brown sugar, and granulated sugar until light and fluffy (3–4 minutes).

  4. Add Eggs & Flavor:

    • Add eggs one at a time, beating well after each.

    • Mix in vanilla and melted butterscotch chips.

  5. Alternate Dry & Milk:

    • Add dry ingredients in 3 parts, alternating with the milk in 2 parts, starting and ending with the dry.

    • Mix until just combined (don’t overmix).

  6. Bake:

    • Divide batter evenly between the prepared pans.

    • Bake for 25–30 minutes, or until a toothpick comes out clean.

    • Let cakes cool in pans for 10 minutes, then turn out onto wire racks to cool completely.


πŸ‘‰ Make the Caramel Frosting:

  1. Cook Caramel Base:

    • In a saucepan over medium heat, combine butter, brown sugar, milk/cream, and salt.

    • Bring to a gentle boil, stirring constantly.

    • Boil for 2–3 minutes, then remove from heat.

  2. Finish Frosting:

    • Stir in vanilla.

    • Let cool for 5–10 minutes, then gradually whisk or beat in powdered sugar until smooth and spreadable. Add more sugar if needed to thicken, or a splash of milk to loosen.


πŸŽ‚ Assemble the Cake:

  1. Place one cake layer on a serving plate.

  2. Spread a generous amount of caramel frosting over the first layer.

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

  4. Optional: Drizzle with extra caramel sauce or top with toffee bits, sea salt, or chopped pecans.


🍬 Tips & Variations:

  • Extra butterscotch flavor? Add 1/2 tsp butterscotch extract or swirl in butterscotch chips before baking.

  • Want a glaze instead of frosting? Use less powdered sugar and pour the warm caramel over the cake.

  • Cupcake option: Bake for 18–20 mins at 350Β°F

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