Butterscotch Cake with Caramel Frosting Recipe

A classic with a dreamy twist, this Butterscotch Cake with Caramel Frosting captures everything we love about nostalgic desserts: a melt-in-your-mouth crumb, deep butterscotch flavor, and a glossy, golden caramel finish. Every bite brings together the warmth of brown sugar, rich molasses, and an irresistibly silky icing—so it’s no wonder this is a showstopper at gatherings and the treat I crave most for cozy celebrations. If you’re ready to wow your tastebuds (and your friends), this recipe is about to become your new favorite comfort cake.

Ingredients You’ll Need

Simple as it looks, each ingredient in this Butterscotch Cake with Caramel Frosting has a role to play. From the sweetness of molasses and brown sugar to the richness of buttermilk, these building blocks are easy to find and promise bakery-quality flavor and texture in your own kitchen.

• All-Purpose Flour: Gives the cake its delicate structure and soft crumb.
• Granulated Sugar: Balances the brown sugar’s richness for a perfectly sweet bite.
• Packed Brown Sugar: Essential for real butterscotch flavor and that gorgeous caramel hue.
• Unsalted Butter (for both cake & icing): Adds unparalleled richness and that melt-in-your-mouth texture, plus real flavor to the icing.
• Large Eggs: Bind everything together while giving the cake a lovely lift.
• Buttermilk (or milk + ½ tsp vinegar): The secret to a moist, tender crumb with just the right tang.
• Molasses: This is where the magic happens—molasses deepens the butterscotch notes for a truly unforgettable cake.
• Baking Soda: Ensures the cake rises tall and light.
• Salt: A pinch makes all the flavors pop and balances the sweetness.
• Ground Cinnamon (optional): Adds a whisper of warmth that plays beautifully with butterscotch.
• Heavy Cream (for icing): Lends creaminess to the caramel frosting for spreadable, smooth perfection.
• Vanilla Extract (for icing): Rounds out the flavors, leaving a fragrant finish.

How to Make Butterscotch Cake with Caramel Frosting

Step 1: Prepare Your Pan

Start by preheating your oven to 350°F (175°C). Grease and flour an 8-inch round or square baking pan—this little bit of prep ensures your cake will release cleanly and look just as beautiful as it tastes!

Step 2: Cream the Butter & Sugars

In a large mixing bowl, beat the softened butter with granulated and brown sugars. Keep mixing until the texture is light and fluffy; this step sets the stage for maximum tenderness and gives that signature butterscotch depth.

Step 3: Add the Eggs

Crack in your eggs one at a time, mixing well after each addition. Taking it slow ensures the batter stays smooth and everything blends seamlessly—the hallmark of a bakery-quality Batter!

Step 4: Mix Dry Ingredients

In a separate bowl, whisk together the flour, baking soda, salt, and cinnamon if you’re using it. Combining these first lets the leavening agent distribute evenly, giving the cake its soft, lofty crumb.

Step 5: Combine Wet & Dry Ingredients

Add the dry ingredients to the butter mixture, alternating with the buttermilk. Begin and end with the dry mix, gently stirring after each addition. You’ll watch the batter come together, rich and velvety, ready for its starring moment in the oven.

Step 6: Stir in Molasses

Fold in the molasses gently, just until everything is evenly mixed. This is where the butterscotch flavor really deepens and the batter transforms into an aromatic, caramel-swirled dream.

Step 7: Bake the Cake

Pour the batter into your prepared pan, smoothing the top with a spatula. Pop it in the oven and bake for 30 to 35 minutes, or until a toothpick inserted into the center comes out clean. The scent filling your kitchen at this point? Absolute heaven.

Step 8: Cool Completely

Once baked, let the cake rest in the pan on a wire rack for at least 30 minutes. This patience pays off—frosting will glide on smoothly and the flavors develop even deeper.

Step 9: Make the Caramel Icing

In a small saucepan, melt butter and brown sugar together with heavy cream. Stir over medium heat until the sugar dissolves and the mixture begins to bubble, creating that luscious caramel base. Simmer for 2–3 minutes, remove from heat, then add vanilla and a pinch of salt. Let the icing cool just enough to set, but not so long that it isn’t easily spreadable.

Step 10: Frost the Cake

Spread the slightly cooled caramel icing evenly over your Butterscotch Cake with Caramel Frosting. It will set up into a glossy, beautiful finish—every swipe making you more excited for that first bite.

How to Serve Butterscotch Cake with Caramel Frosting

Garnishes

Dress up each slice simply with a sprinkle of flaky sea salt, a handful of chopped pecans or walnuts, or even a light dusting of cinnamon. If you want to elevate your Butterscotch Cake with Caramel Frosting for a special event, try adorning it with edible flowers or toffee pieces for that wow factor.

Side Dishes

This cake pairs beautifully with a scoop of vanilla bean ice cream or a dollop of softly whipped cream. For a cozier pairing, serve alongside a cup of bold coffee or a spiced chai latte—the warm, comforting notes in both will highlight every element of your cake.

Creative Ways to Present

Transform your Butterscotch Cake with Caramel Frosting into individual desserts by baking in muffin tins for adorable cupcakes, layering with extra caramel between rounds for a mini layer cake, or cutting into squares and skewering with fruit for an elegant dessert platter. The options are as fun as they are delicious!

Make Ahead and Storage

Storing Leftovers

Keep any leftover Butterscotch Cake with Caramel Frosting covered in an airtight container at room temperature for up to 2 days. For extended freshness, pop it into the fridge, where it will stay lovely for up to 5 days. Just be sure to let chilled slices sit out for a few minutes before eating for the best texture and flavor.

Freezing

If you plan to make the cake ahead, you can freeze the unfrosted cake tightly wrapped for up to 2 months. For frosted leftovers, freeze slices on a tray then transfer to an airtight container. Thaw overnight in the fridge for melt-in-your-mouth cake anytime you want.

Reheating

To refresh your Butterscotch Cake with Caramel Frosting, warm slices very gently in the microwave for about 10–15 seconds; this brings out the softness and revives that glossy caramel. If reheating from frozen, let slices thaw first for best results.

FAQs

Can I make Butterscotch Cake with Caramel Frosting ahead of time?

Absolutely! You can bake the cake a day in advance and store it unfrosted, then add the caramel icing just before serving for the freshest taste and look.

What if I don’t have buttermilk?

No worries at all. Substitute by adding ½ teaspoon of vinegar or lemon juice to regular milk, stir, and let it sit for a few minutes before using. It’ll give you the same tangy moisture and perfect crumb.

Can I use store-bought caramel sauce instead of making the icing?

While homemade truly delivers that silky finish, you can use a thick, high-quality caramel sauce in a pinch. Heat it slightly and drizzle over the cooled cake for a shortcut version.

Is there a gluten-free option for this cake?

Yes! Try swapping the all-purpose flour with a cup-for-cup gluten-free baking blend. Just check that your mix contains xanthan gum or add a pinch yourself to help with the structure.

How do I know when the cake is done?

A toothpick or cake tester inserted in the center of the cake should come out clean, or with just a crumb or two attached. You’ll also notice the cake has a springy top and pulls slightly from the edges of the pan.

Final Thoughts

Every baking adventure has its rewards, but there’s something extra special about a homemade Butterscotch Cake with Caramel Frosting. It’s beautiful, satisfying, and even more delicious than it looks. Try it once and you’ll find yourself reaching for the recipe anytime you crave a truly memorable, heartwarming dessert!

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