Butterscotch Cake topped with luscious caramel icing on a white plate

Butterscotch Cake with Caramel Icing: Nostalgia in Every Bite

Some desserts just taste like childhood, don’t they? For me, butterscotch cake with caramel icing is that soul-warming treat I can’t help but associate with laughter echoing through my grandma’s kitchen and sneaky finger swipes through bowls of homemade frosting. The heavenly blend of brown sugar and buttery richness has a way of transporting me back to Sunday afternoons when happiness was measured in slices.
So if you’ve been dreaming of an old-fashioned butterscotch cake (topped, of course, with luscious caramel icing), you’re in exactly the right place—let’s relive those sweet, sticky memories together.


Why You’ll Adore This Butterscotch Cake with Caramel Icing

If you need convincing (though honestly, who could resist a homemade butterscotch cake?), here’s why this recipe stands out:

  • Brown Sugar Bliss: The deep, caramelized notes of brown sugar give this cake an extra layer of toffee-like flavor that just melts in your mouth.
  • Moist and Tender Texture: Thanks to a generous helping of butter, every bite is as soft and fluffy as you could hope for. No dry cakes here!
  • Crowd-Pleaser: This classic butterscotch cake recipe never fails to impress at birthdays or potlucks (and somehow disappears faster than any store-bought dessert).
  • That Caramel Icing: Silky, gooey caramel icing takes this butterscotch cake to the next level of decadence. I dare you not to lick the spoon!

Ingredients You’ll Need for Butterscotch Cake with Caramel Icing

Gather your pantry staples and a dash of nostalgia! Here’s what you’ll need for this timeless butterscotch cake recipe:

  • Brown Sugar (2 cups): Dark brown sugar provides extra richness, but use light brown sugar if that’s what you have.
  • Butter (1/2 cup): I always opt for unsalted (so you can control the saltiness yourself).
  • Vanilla Extract (1 teaspoon): Real vanilla gives a warm, aromatic finish.
  • Eggs (2): Room temperature eggs blend best (pop them in a bowl of warm water for 5 minutes if you forget!).
  • All-Purpose Flour (2 cups): Sift it for a lighter crumb, especially for a fluffy butterscotch cake.
  • Baking Powder (1 teaspoon): For reliable rise—no flat cakes on my watch.
  • Caramel Icing: Homemade or store-bought, just don’t skip it—caramel is what makes this butterscotch cake irresistible.

(If you love baking with pantry essentials, this recipe truly shines with its simple, accessible ingredients.)


Step-by-Step Guide: Making the Perfect Butterscotch Cake with Caramel Icing

Let’s break it down—baking a butterscotch cake should feel like a relaxing, joy-filled ritual, not a chore!

  1. Preheat Oven: Set yours to 350°F (175°C). Grease and flour two 9-inch round cake pans (use parchment circles if you’re nervous about sticking—trust me, it’s a game changer).
  2. Cream Butter & Sugar: In a large bowl, cream brown sugar and butter until pale and fluffy. You’ll know it’s right when it looks almost like caramel frosting already.
  3. Add Eggs & Vanilla: Beat in eggs, one at a time. Don’t rush this step! Then stir in vanilla extract for that comforting aroma.
  4. Mix Dry Ingredients: In a separate bowl, whisk together flour and baking powder—this keeps your butterscotch cake tender.
  5. Combine Mixtures: Gradually add the dry ingredients to the wet. Mix until just combined—over-mixing can make the cake dense.
  6. Bake: Divide the cake batter evenly between your pans and smooth the tops. Bake 25–30 minutes until a toothpick poked in the center comes out mostly clean.
  7. Cool: Let cakes rest in pans for 10 minutes. Then run a knife around the edges, flip onto wire racks, and let them cool completely.
  8. Frost with Caramel Icing: Once cool, slather generously with caramel icing. (No one ever complained about too much frosting!)

My Secret Tips and Tricks for Butterscotch Cake Success

Learning this cake was honestly a journey for me—lots of happy accidents along the way! Here’s what I’ve picked up:

  • Don’t skimp on creaming the butter and sugar: This step builds air into the base and ensures your butterscotch cake is impossibly soft.
  • Use room temperature ingredients: Your batter will come together more smoothly (and your cake layers will rise evenly).
  • Homemade caramel icing if you have the time: Store-bought works, but a quick homemade batch brings out the full butterscotch magic.
  • A sprinkle of flaky salt: Just a pinch atop the caramel icing can brighten the flavors and balance the sweetness (salted caramel fans, rejoice!).
  • Chill before slicing: If you can wait, a little time in the fridge makes slicing this homemade cake so much neater.

(And yes, licking the spatula is required—brown sugar and caramel icing make the best “chef’s treat.”)


Creative Variations and Ingredient Swaps

Whether you’re baking for picky eaters or need a new twist, this classic butterscotch cake recipe is endlessly adaptable:

  • Nutty Crunch: Add 1/2 cup of toasted pecans or walnuts to the batter for added texture.
  • Spice it Up: A pinch of cinnamon or nutmeg in the flour brings cozy, fall flavors.
  • Gluten-Free: Sub in your favorite all-purpose gluten-free flour blend—this butterscotch cake holds up well!
  • Dairy-Free: Replace butter with plant-based margarine and try a dairy-free caramel icing.
  • Cupcake Version: Pour the batter into lined muffin tins and bake for 18–20 minutes for adorable mini butterscotch cakes.
  • Salted Caramel Twist: Sprinkle a touch of large-flake sea salt over the icing for that sweet-salty kick.

(You can even layer the cake with sliced bananas or a thin spread of caramel between rounds for a bakery-worthy upgrade.)


How to Serve and Store Your Butterscotch Cake with Caramel Icing

This butterscotch cake recipe is made for sharing—slice it thick, pass it around, and watch everyone’s eyes light up. For serving:

  • For Parties: Slice into wedges and serve with a scoop of vanilla ice cream or fresh berries.
  • Casual Snacking: A mug of coffee or hot tea is all you need alongside a slice of this classic butterscotch cake.
  • Storing Leftovers: Cover well and keep at room temperature for up to 2 days, or in the fridge for up to a week. If you want to freeze slices, wrap tightly in plastic and foil (they’ll keep for up to 2 months).

(Pro-tip: If you microwave leftover cake for just 10 seconds, the caramel icing melts into a gooey delight. Thank me later!)


FAQs: Your Top Questions About Butterscotch Cake with Caramel Icing Answered

1. Can I make this butterscotch cake ahead of time?
Absolutely! Bake the cake layers a day ahead, wrap them in plastic, and frost the next day for a stress-free dessert.

2. What’s the best way to make caramel icing for butterscotch cake?
A quick stovetop caramel icing with butter, brown sugar, cream, and vanilla makes for the dreamiest topping (but ready-made works if you’re short on time).

3. Can I bake this as a single-layer butterscotch cake?
You sure can—just use a 9×13 pan, bake for 28-32 minutes, and load on that caramel icing.

4. Is butterscotch cake very sweet?
It’s delightfully sweet, but not cloying—thanks to the bit of saltiness from the butter and depth from brown sugar (balance is everything with classic butterscotch desserts).

5. How do I keep my butterscotch cake moist?
Don’t overbake, and make sure you’re measuring your flour properly (spooning, not packing, for the perfect, moist crumb).

Let me know if you have any other questions—I genuinely love hearing about your baking adventures and am always here to help make your butterscotch cake dreams come true!


There you have it—your new go-to recipe for butterscotch cake with caramel icing, guaranteed to bring smiles, sticky fingers, and second helpings. If you try this classic butterscotch cake, tag me or drop a comment below—I can’t wait to see how it turns out in your kitchen! 💛

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