Butterscotch Cake with Caramel Frosting

A rich, old-fashioned butterscotch cake topped with silky caramel frosting—every bite is sweet, buttery perfection. Ideal for birthdays, gatherings, or cozy evenings in.
Why You’ll Love This Recipe
If you’re a fan of nostalgic, deeply flavorful desserts, this butterscotch cake delivers. Made with brown sugar, molasses, and buttermilk, it’s moist and full of warm flavor. The homemade caramel frosting is smooth and just the right balance of sweet and salty, creating a dessert that feels both classic and indulgent.
Whether you’re baking for a special event or just craving something cozy, this cake is a crowd-pleaser that tastes like it came straight from a bakery.
Ingredients
For the Cake:
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1½ cups all-purpose flour
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1 cup granulated sugar
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¾ cup packed brown sugar
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½ cup unsalted butter, softened
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2 large eggs
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½ cup buttermilk (or ½ cup milk + ½ tsp vinegar)
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¼ cup molasses
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1 tsp baking soda
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½ tsp salt
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½ tsp ground cinnamon (optional)
For the Caramel Icing:
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½ cup unsalted butter
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1 cup packed brown sugar
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¼ cup heavy cream
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1 tsp vanilla extract
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Pinch of salt
Step-by-Step Directions
Prep Time: 20 minutes
Cook Time: 35 minutes
Total Time: 55 minutes
Servings: 10
Calories: Approximately 420 kcal per serving
1. Preheat oven to 350°F (175°C). Grease and flour an 8-inch round or square baking pan.
2. In a large bowl, beat softened butter with granulated and brown sugars until light and fluffy.
3. Add eggs one at a time, beating well after each addition.
4. In a separate bowl, whisk together flour, baking soda, salt, and cinnamon.
5. Add dry ingredients to the wet mixture in 3 additions, alternating with buttermilk. Begin and end with dry ingredients.
6. Stir in molasses until fully incorporated.
7. Pour batter into the prepared pan and smooth the top.
8. Bake for 30–35 minutes, or until a toothpick inserted in the center comes out clean.
9. Let the cake cool in the pan for 30 minutes before frosting.
For the Icing:
10. In a saucepan over medium heat, combine butter, brown sugar, and heavy cream. Stir constantly until the sugar is dissolved and the mixture begins to bubble.
11. Reduce heat to low and simmer for 2–3 minutes. Remove from heat and stir in vanilla and a pinch of salt.
12. Allow icing to cool slightly, then spread over the cooled cake.
13. Slice and serve.
Serving Ideas
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Serve warm with a scoop of vanilla or butter pecan ice cream.
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Add a drizzle of extra caramel sauce for more richness.
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Pair with a cup of coffee or spiced chai for a cozy afternoon treat.
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Make it extra festive with candied pecans or a sprinkle of sea salt on top.
Tips & Variations
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No buttermilk? Use milk plus a splash of vinegar or lemon juice.
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Add chopped toasted pecans or walnuts to the batter for crunch.
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A sprinkle of flaky sea salt on top balances the sweetness.
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If the icing sets too quickly, warm it gently before spreading.
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Bake in a loaf or bundt pan for a different presentation (adjust baking time as needed).
Frequently Asked Questions
What’s the difference between butterscotch and caramel?
Caramel is typically made with white sugar, while butterscotch uses brown sugar and butter, giving it a deeper, richer flavor.
Can I make this cake ahead of time?
Yes. You can bake the cake a day in advance and store it (unfrosted) covered at room temperature. Add frosting the day you plan to serve it.
Does this cake need to be refrigerated?
If you’re storing it for more than a day or two, refrigerate in an airtight container. Bring to room temperature before serving.
Can I use store-bought caramel frosting?
You can, but the homemade version in this recipe is simple and much more flavorful.
Can I freeze leftovers?
Yes. Wrap individual slices in plastic wrap and freeze for up to 2 months. Thaw at room temperature.
Final Thoughts
This Butterscotch Cake with Caramel Frosting is a warm and comforting dessert with an old-fashioned charm. It’s rich but not overly sweet, with a moist crumb and glossy icing that sets beautifully. Whether you’re serving it at a dinner party or just treating yourself, it’s a dessert that always impresses.