Butterscotch Cake with Caramel Icing

Butterscotch Cake with Caramel Icing is pure comfort in cake form. Rich, buttery, and filled with deep toffee notes, this cake is a nostalgic treat that always satisfies my sweet tooth. Paired with a luscious caramel icing that drips beautifully over each slice, it’s a dessert I turn to when I want something both classic and indulgent.

Why You’ll Love This Recipe

I love how this cake delivers warm, cozy flavors with every bite. The butterscotch brings that signature brown sugar richness, while the caramel icing adds a glossy, sweet finish that’s impossible to resist. It’s the kind of cake that makes people close their eyes on the first bite. Whether I’m baking it for birthdays, holidays, or a casual Sunday afternoon, it never lasts long on the table.

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 (softened)
• Brown sugar (light or dark for deeper flavor)
• Granulated sugar
• Eggs
• Vanilla extract
• Sour cream or buttermilk
• Milk
• Butterscotch chips (optional, for added texture)

For the Caramel Icing:

• Unsalted butter
• Brown sugar
• Heavy cream or milk
• Powdered sugar
• Vanilla extract
• Pinch of salt

Directions

To make the cake:

1. I preheat the oven to 350°F and grease and flour two round cake pans (or one 9×13-inch pan).

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

3. In a large mixing bowl, I cream the butter with the brown and white sugars until fluffy.

4. I add eggs one at a time, beating well after each, then stir in vanilla.

5. I alternate adding the dry ingredients and the sour cream/milk mixture to the batter, mixing just until combined.

6. If I’m using butterscotch chips, I fold them in now.

7. I divide the batter between pans and bake for 30–35 minutes, or until a toothpick comes out clean.

8. I cool the cakes completely before frosting.

To make the caramel icing:

1. In a saucepan, I melt the butter and stir in the brown sugar.

2. I cook for 2–3 minutes, stirring constantly, until the sugar dissolves.

3. I add cream and bring it to a gentle boil, then remove it from heat and stir in vanilla and a pinch of salt.

4. I gradually whisk in powdered sugar until smooth and spreadable.

5. I let it cool slightly before spreading it over the cake.

Servings and timing

This cake serves 10–12 people. It takes about 20 minutes to prep, 30–35 minutes to bake, and around 10–15 minutes to make the icing—so it’s ready in just over an hour (plus cooling time).

Variations

• I sometimes add chopped toasted pecans or walnuts to the batter or sprinkle them over the frosting for a nutty crunch.

• A touch of bourbon in the caramel icing gives it a grown-up kick.

• I turn this into cupcakes by adjusting the bake time to 18–22 minutes.

• For extra decadence, I drizzle more caramel sauce on top or serve each slice with whipped cream.

Storage/Reheating

I keep the cake covered at room temperature for up to 3 days, or refrigerated for up to 5 days. If chilled, I bring slices to room temp or microwave them for a few seconds to soften the icing. This cake also freezes well—just wrap slices tightly and freeze for up to a month.

FAQs

Can I make this cake ahead of time?

Yes, I often bake the cake layers a day ahead and frost it the next day. It actually gives the flavors time to develop.

What’s the difference between butterscotch and caramel?

Butterscotch is made with brown sugar and butter, while caramel usually uses white sugar. That gives butterscotch a deeper, molasses-like flavor.

Can I use store-bought caramel sauce for the icing?

I can, but homemade icing really makes a difference in flavor and texture—it’s worth the few extra minutes.

How do I keep the caramel icing from hardening?

I use it while it’s still warm and spreadable. If it thickens too much, I stir in a splash of milk and warm it gently to loosen it up.

Can I make this cake without butterscotch chips?

Absolutely. The chips add texture and extra flavor, but the cake is still delicious without them.

Conclusion

Butterscotch Cake with Caramel Icing is a show-stopping dessert that combines rich, buttery flavor with a dreamy, sweet finish. I love how comforting and classic it feels, and how easy it is to make from scratch. Whether I’m sharing it at a celebration or enjoying it with coffee, this cake always makes the moment feel extra special.