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Butterscotch Cake with Caramel Icing

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  • Author: Mary
  • Prep Time: 20 minutes
  • Total Time: 30–35 minutes
  • Yield: Serves 10–12
  • Category: Dessert, Cake
  • Method: Baking
  • Cuisine: American
  • Diet: Vegetarian

Description

This Butterscotch Cake with Caramel Icing is rich, buttery, and irresistibly nostalgic—featuring layers of moist butterscotch-flavored cake topped with a silky caramel icing. It’s a comforting dessert perfect for birthdays, holidays, or cozy gatherings, with warm brown sugar notes and a sweet, glossy finish that’s pure indulgence in every slice.


Ingredients

For the Butterscotch Cake:

  • 2½ cups all-purpose flour
  • 2 teaspoons baking powder
  • ½ teaspoon baking soda
  • ½ teaspoon salt
  • 1 cup unsalted butter, softened
  • 1 cup brown sugar (light or dark)
  • ½ cup granulated sugar
  • 3 large eggs
  • 1 tablespoon vanilla extract
  • ¾ cup sour cream or buttermilk
  • ½ cup milk
  • 1 cup butterscotch chips (optional)

For the Caramel Icing:

  • ½ cup unsalted butter
  • 1 cup brown sugar
  • ¼ cup heavy cream or milk
  • 2 cups powdered sugar
  • 1 teaspoon vanilla extract
  • Pinch of salt

Instructions

Make the Cake:

  1. Preheat oven to 350°F (175°C). Grease and flour two 8-inch round cake pans or one 9×13-inch pan.
  2. In a bowl, whisk together flour, baking powder, baking soda, and salt.
  3. In a large bowl, cream butter, brown sugar, and granulated sugar until light and fluffy.
  4. Beat in eggs one at a time, then mix in vanilla.
  5. Alternate adding dry ingredients and sour cream/milk mixture, mixing just until combined.
  6. Fold in butterscotch chips if using.
  7. Pour batter into prepared pans and bake for 30–35 minutes, or until a toothpick comes out clean.
  8. Cool completely before frosting.

Make the Caramel Icing:

  1. In a saucepan over medium heat, melt butter and stir in brown sugar.
  2. Cook, stirring constantly, for 2–3 minutes until sugar dissolves.
  3. Add cream and bring to a gentle boil, then remove from heat.
  4. Stir in vanilla and salt, then gradually whisk in powdered sugar until smooth and spreadable.
  5. Let cool slightly and spread over cooled cake.

Notes

  • Add toasted pecans or walnuts to the batter or sprinkle on top for a nutty crunch.
  • Add 1–2 teaspoons bourbon to the icing for a grown-up twist.
  • Bake as cupcakes (18–22 minutes) for individual servings.
  • Serve with whipped cream or a drizzle of extra caramel for extra indulgence.