This Salted Caramel Butterscotch Cake is a decadent dessert that strikes the perfect balance between sweet and salty. Featuring layers of moist butterscotch cake, rich salted caramel sauce, and velvety buttercream, it’s a show-stopping treat that’s perfect for special occasions or just indulging your sweet tooth.

Why You’ll Love This Recipe

This cake is a celebration of rich flavors and indulgent textures. The butterscotch cake layers are moist and tender, infused with buttery, caramel-like notes. The salted caramel adds depth and a hint of contrast to the sweetness, while the frosting ties everything together with smooth, creamy perfection. Whether you’re baking for a birthday, holiday, or a cozy gathering, this cake will impress everyone who takes a bite.

ingredients

(Tip: You’ll find the full list of ingredients and measurements in the recipe card below.)

All-purpose flour
Baking powder
Baking soda
Salt
Unsalted butter
Light brown sugar
Eggs
Vanilla extract
Buttermilk
Butterscotch chips

For the Salted Caramel Sauce:

Granulated sugar
Unsalted butter
Heavy cream
Sea salt

For the Frosting:

Unsalted butter
Powdered sugar
Vanilla extract
Salted caramel sauce

directions

Make the cake: Preheat your oven and prepare cake pans. Cream together butter and brown sugar until fluffy. Add eggs one at a time, then mix in vanilla. In a separate bowl, combine the dry ingredients. Alternate adding the dry mixture and buttermilk to the wet ingredients. Fold in butterscotch chips. Pour the batter into pans and bake until golden and a toothpick comes out clean. Let cool completely.
Prepare the salted caramel: In a saucepan, melt sugar until it becomes amber-colored. Add butter and stir until melted. Slowly mix in heavy cream (careful—it will bubble). Remove from heat and stir in sea salt. Let it cool.
Make the frosting: Beat butter until creamy, gradually add powdered sugar, then mix in vanilla and some of the salted caramel sauce until smooth and spreadable.
Assemble the cake: Level the cake layers if needed. Spread frosting between layers and over the outside. Drizzle salted caramel sauce over the top and allow it to drip down the sides for a beautiful finish.

Servings and timing

Servings: 12 slices
Prep Time: 30 minutes
Cook Time: 30 minutes
Cooling & Assembly Time: 1 hour
Total Time: 2 hours

Variations

Chocolate Version: Add cocoa powder to the cake batter and use chocolate chips instead of butterscotch.
Nutty Addition: Mix in chopped pecans or walnuts for a crunchy texture.
Cupcake Adaptation: Turn the cake into individual cupcakes by adjusting the baking time to around 18–22 minutes.
Dairy-Free Option: Use dairy-free butter, milk, and cream substitutes.
Spiced Version: Add a pinch of cinnamon or nutmeg for a warm, fall-inspired flavor.

storage/reheating

Store the cake in an airtight container at room temperature for up to 2 days or refrigerate for up to 5 days. If refrigerated, let the cake come to room temperature before serving for the best texture. You can also freeze individual slices tightly wrapped for up to 2 months. To thaw, let them sit at room temperature for a few hours.

FAQs

How do I prevent my caramel from crystallizing?

Make sure your sugar is evenly melted and avoid stirring too much while it’s caramelizing. Using a wet pastry brush to clean down the sides of the pan can help prevent crystals.

Can I make this cake ahead of time?

Yes, the cake layers can be made a day in advance and stored tightly wrapped. Assemble and frost the cake the day you plan to serve.

Is it necessary to use buttermilk?

Buttermilk adds moisture and a subtle tang that balances the sweetness. You can substitute with milk mixed with a bit of lemon juice or vinegar.

What’s the best way to get smooth frosting?

Beat the butter until fluffy before adding powdered sugar. Make sure your caramel is cooled to room temperature before mixing it in.

Can I use store-bought caramel sauce?

Yes, store-bought caramel works in a pinch, but homemade adds a richer, more authentic flavor.

Why is my cake dry?

Overbaking or too much flour can cause dryness. Use proper measuring techniques and keep an eye on the baking time.

How do I get perfect caramel drips?

Use slightly warm caramel and apply it with a spoon or squeeze bottle along the cake edge, allowing it to naturally drip down.

Can I make this gluten-free?

Yes, substitute with a 1:1 gluten-free flour blend, but note that the texture may vary slightly.

How long does it take the caramel to cool?

Usually about 20–30 minutes at room temperature. It should be thick but pourable before using.

Can I use salted butter in the caramel?

You can, but reduce the added salt in the recipe to avoid over-salting the sauce.

Conclusion

This Salted Caramel Butterscotch Cake is the ultimate indulgent dessert that blends classic comfort with elevated flavor. Whether you’re celebrating something special or simply craving a rich, buttery treat, this cake delivers in both taste and presentation. Try it once, and it may just become your go-to favorite.

Salted Caramel Butterscotch Cake