Butterscotch Cake with Caramel Frosting is a rich and flavorful dessert combining moist, tender cake and smooth, creamy caramel frosting.
The cake features warm notes from brown sugar and molasses, enhanced by butterscotch pudding mix for extra softness.
The caramel frosting blends melted butterscotch chips, butter, and brown sugar, creating a luscious topping that complements the cake’s texture.
This dessert is delicious and satisfying, often enjoyed during celebrations, cozy gatherings, or anytime a sweet treat is desired.
Many find inspiration to make this cake when craving comfort food or wanting to impress guests with a decadent homemade dessert.
Now, the guide to preparing this Butterscotch Cake with Caramel Frosting begins.
Why We Love This Recipe
We love this Butterscotch Cake with Caramel Frosting because it delivers a beautifully moist and flavorful cake with the perfect balance of sweet butterscotch and creamy caramel.
The combination of soft, tender layers and rich frosting makes every bite comforting and satisfying. It’s an elegant yet approachable dessert that never fails to impress family and friends, making it a timeless favorite for any celebration or cozy gathering.
Butterscotch Cake With Caramel Frosting
Recipe Overview
Preparation Time: 25 minutes
Cooking Time: 35 minutes
Total Time: 1 hour
Course: Dessert
Cuisine: American
Calories: ~670 per serving
Yield: 12 servings
Kitchen Utensils
- 2 mixing bowls
- Electric mixer (hand or stand)
- Spatula
- Measuring cups and spoons
- Saucepan
- 9-inch round cake pans (2)
- Wire rack for cooling
- Offset spatula or knife for frosting
- Whisk
Ingredients
For the Butterscotch Cake:
- 2½ cups (325 g) all-purpose flour
- 3½ teaspoons baking soda
- ½ teaspoon salt
- ¾ cup (168 g) unsalted butter, softened
- 1½ cups (337 g) packed light brown sugar
- 4 large eggs
- ¼ cup molasses
- ½ teaspoon ground cinnamon
- 1¼ cups (300 ml) milk
- 1 (3.4 oz / 96 g) package butterscotch instant pudding mix
For the Caramel Frosting:
- 1¼ cups (280 g) unsalted butter, softened
- 11 oz (312 g) butterscotch chips, melted
- 6¼ cups (719 g) brown sugar
- ½ teaspoon salt
- ½ cup (120 ml) heavy cream
- 1 teaspoon vanilla extract
Instructions
1. Preheat & Prep Pans:
Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans, then line the bottoms with parchment paper for easy removal.
2. Mix Dry Ingredients:
In a medium bowl, whisk together the flour, baking soda, salt, and ground cinnamon. Set aside.
3. Cream Butter & Sugar:
In a large mixing bowl, beat the softened butter and brown sugar using an electric mixer until light and fluffy, about 2–3 minutes.
4. Add Wet Ingredients:
Beat in the eggs one at a time. Then mix in the molasses. Alternate adding the flour mixture and milk in batches, starting and ending with the flour. Finally, fold in the butterscotch pudding mix until just combined.
5. Bake the Cake:
Divide the batter evenly between the prepared pans. Bake for 30–35 minutes or until a toothpick inserted in the center comes out clean. Let cakes cool in the pans for 10 minutes, then turn out onto wire racks to cool completely.
6. Make the Caramel Frosting:
In a saucepan, melt butter over medium heat. Stir in brown sugar and salt, then pour in heavy cream. Bring to a gentle boil and simmer for 3–4 minutes. Remove from heat and stir in vanilla and melted butterscotch chips. Let cool to a spreadable consistency.
7. Assemble and Frost:
Place one cake layer on a serving plate. Spread frosting on top, then add the second cake layer. Cover the entire cake with frosting using an offset spatula. Let set before serving.
Special Notes
For a deeper butterscotch taste, toast the butterscotch pudding mix in a dry skillet for 1–2 minutes on low heat before mixing it into the batter. Let it cool first.
If the caramel frosting thickens too much as it cools, gently reheat it over low heat or whisk in a tablespoon of warm cream until smooth and spreadable.

Serving Suggestions
Serve this rich Butterscotch Cake with Caramel Frosting a generous drizzle of warm caramel sauce and a scoop of vanilla ice cream for an indulgent dessert.
For a touch of elegance, garnish with crushed butterscotch candies or a light sprinkle of sea salt. It pairs wonderfully with a hot cup of coffee, chai, or even a glass of milk for a cozy treat that’s perfect for celebrations or a sweet weekend indulgence.
Expert Tips
➢ Incorporating instant butterscotch pudding mix adds extra moisture and enhances the flavor, keeping your cake tender and rich.
➢ Sifting the flour, baking soda, and spices together helps to evenly distribute and aerate the mixture, resulting in a lighter, fluffier cake texture.
➢ A small amount of brewed coffee or espresso added to the batter can deepen the butterscotch flavor without overpowering it.
➢ For extra texture and flavor, consider folding in toasted pecans or walnuts into the batter or sprinkling them between layers.
➢ If your caramel frosting feels too thick to spread, warm it gently in the microwave for 10-15 seconds to get a smoother finish when frosting the cake.
Additions And Variations
❖ Nutty Crunch: Fold chopped toasted pecans or walnuts into the batter or sprinkle them between the cake layers for added texture and a nutty flavor.
❖ Spice it Up: Add a pinch of nutmeg or ground ginger along with the cinnamon for a warm, spiced twist.
❖ Chocolate Delight: Swirl in some melted dark chocolate or add chocolate chips to the batter for a butterscotch-chocolate combo.
❖ Fruit Flair: Layer thinly sliced apples or pears between the cake layers for a fresh, fruity contrast.
❖ Salted Caramel: Sprinkle flaky sea salt on top of the caramel frosting to balance the sweetness with a salty kick.
❖ Coffee Infusion: Replace part of the milk with brewed coffee or espresso to deepen the butterscotch flavor.
❖ Vegan Version: Use dairy-free butter, plant-based milk, and vegan pudding mix to make a delicious vegan-friendly cake.
How Do I Store This Cake?
Keep the frosted Butterscotch Cake with Caramel Frosting covered tightly with plastic wrap or in an airtight container at room temperature for up to 2 days.
For longer freshness, refrigerate the Butterscotch Cake with Caramel Frosting for up to 5 days allow it to come to room temperature before serving to enjoy its full flavor and creamy texture.
You can also freeze the unfrosted cake layers for up to 2 months, wrapping them well to prevent freezer burn.
FAQs About Butterscotch Cake with Caramel Frosting
Can I make this cake gluten-free?
Yes, by using a gluten-free all-purpose flour blend instead of regular flour, you can make this cake gluten-free without sacrificing texture.
How long does the cake stay fresh?
When stored properly in an airtight container, the frosted cake stays fresh for up to 5 days in the refrigerator.
Can I freeze the cake?
You can freeze unfrosted cake layers for up to 2 months. Wrap them tightly in plastic wrap and foil. Frost after thawing.
Is the caramel frosting very sweet?
The frosting is rich and sweet but balanced by the slight saltiness of butter and a pinch of salt to prevent it from being overpowering.
Can I use homemade caramel instead of butterscotch chips?
Yes, melted homemade caramel can be substituted, but the flavor will be slightly different, with a more buttery and less sweet profile.
Conclusion
I really enjoyed making and tasting this Butterscotch Cake with Caramel Frosting. The rich flavors and creamy frosting made it a truly special treat.
I hope you try this Butterscotch Cake with Caramel Frosting and find it just as delicious and satisfying. It’s a wonderful way to bring warmth and sweetness to your table.
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Butterscotch Cake With Caramel Frosting
Equipment
- 2 mixing bowls
- Electric mixer (hand or stand)
- Spatula
- Measuring cups and spoons
- Saucepan
- 9-inch round cake pans (2),
- Wire rack for cooling
- Offset spatula or knife for frosting
- Whisk
Ingredients
For the Butterscotch Cake:
- 2½ cups 325 g all-purpose flour
- 3½ teaspoons baking soda
- ½ teaspoon salt
- ¾ cup 168 g unsalted butter, softened
- 1½ cups 337 g packed light brown sugar
- 4 large eggs
- ¼ cup molasses
- ½ teaspoon ground cinnamon
- 1¼ cups 300 ml milk
- 1 3.4 oz / 96 g package butterscotch instant pudding mix
For the Caramel Frosting:
- 1¼ cups 280 g unsalted butter, softened
- 11 oz 312 g butterscotch chips, melted
- 6¼ cups 719 g brown sugar
- ½ teaspoon salt
- ½ cup 120 ml heavy cream
- 1 teaspoon vanilla extract
Instructions
Preheat & Prep Pans:
- Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans, then line the bottoms with parchment paper for easy removal.
Mix Dry Ingredients:
- In a medium bowl, whisk together the flour, baking soda, salt, and ground cinnamon. Set aside.
Cream Butter & Sugar:
- In a large mixing bowl, beat the softened butter and brown sugar using an electric mixer until light and fluffy, about 2–3 minutes.
Add Wet Ingredients:
- Beat in the eggs one at a time. Then mix in the molasses. Alternate adding the flour mixture and milk in batches, starting and ending with the flour. Finally, fold in the butterscotch pudding mix until just combined.
Bake the Cake:
- Divide the batter evenly between the prepared pans. Bake for 30–35 minutes or until a toothpick inserted in the center comes out clean. Let cakes cool in the pans for 10 minutes, then turn out onto wire racks to cool completely.
Make the Caramel Frosting:
- In a saucepan, melt butter over medium heat. Stir in brown sugar and salt, then pour in heavy cream. Bring to a gentle boil and simmer for 3–4 minutes. Remove from heat and stir in vanilla and melted butterscotch chips. Let cool to a spreadable consistency.
Assemble and Frost:
- Place one cake layer on a serving plate. Spread frosting on top, then add the second cake layer. Cover the entire cake with frosting using an offset spatula. Let set before serving.