Decadent Caramel Cake with Fluffy Buttercream Frosting

Caramel cake is a beloved classic in the world of desserts, renowned for its rich, buttery flavor, moist crumb, and luscious caramel icing. Often associated with Southern hospitality and home-cooked tradition, this indulgent treat carries with it a sense of nostalgia, often passed down through generations of bakers. It’s a cake that epitomizes comfort and celebration, often gracing tables at birthdays, holidays, and family gatherings. What sets a caramel cake apart is its deep caramel flavor, achieved through slow-cooked sugar, which infuses both the cake layers and the frosting, delivering a complex, sweet richness that pairs perfectly with a soft, fluffy buttercream topping. While it may seem like a bakery-level creation, with the right ingredients and a touch of patience, even home bakers can recreate this show-stopping dessert in their own kitchens.

The history of caramel cake is closely tied to Southern American cuisine, where it has become something of a culinary icon. Rooted in the early 19th century, the cake likely evolved from simpler butter or pound cakes, with caramel icing added as a luxurious finishing touch. Traditional recipes relied on painstaking methods of caramelizing sugar over a stovetop, often taking hours to perfect. The cake’s popularity soared in the early 20th century, appearing in community cookbooks and church potluck spreads across the Southern United States. It has remained a staple dessert ever since, especially in states like Georgia, Alabama, and Mississippi. Over the decades, the recipe has been tweaked and customized, but the soul of the cake—its rich caramel essence—has remained intact, continuing to charm those who savor it.

Ingredients Breakdown

For the cake:

  • 2½ cups all-purpose flour
  • 2½ tsp baking powder
  • ½ tsp baking soda
  • ½ tsp salt
  • ¾ cup unsalted butter, room temperature
  • 1½ cups granulated sugar
  • 3 large eggs
  • 1 tbsp vanilla extract
  • 1 cup whole milk
  • ½ cup sour cream

For the caramel sauce:

  • 1½ cups granulated sugar
  • ½ cup water
  • ½ cup heavy cream
  • 4 tbsp unsalted butter
  • 1 tsp vanilla extract
  • Pinch of salt

For the buttercream frosting:

  • 1 cup unsalted butter, room temperature
  • 3½ cups powdered sugar
  • ½ cup of the prepared caramel sauce
  • 2 tbsp heavy cream (as needed)
  • 1 tsp vanilla extract
  • Pinch of salt

Step-by-Step Recipe:

  1. Prepare the caramel sauce: In a medium saucepan, combine sugar and water over medium heat. Stir gently until the sugar dissolves. Allow the mixture to boil undisturbed until it turns a deep amber color. Remove from heat immediately and carefully stir in the butter and cream (it will bubble vigorously). Add vanilla and salt, then set aside to cool completely.
  2. Make the cake batter: Preheat your oven to 350°F (175°C). Grease and flour three 8-inch cake pans. In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. In a large bowl, beat the butter and sugar until light and fluffy, about 3-4 minutes. Add eggs one at a time, mixing well after each addition, then mix in vanilla. Add dry ingredients in three additions, alternating with the milk and sour cream. Mix just until combined.
  3. Bake the cake: Divide the batter evenly among the prepared pans and smooth the tops. Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean. Let the cakes cool in the pans for 10 minutes before turning them out onto wire racks to cool completely.
  4. Make the buttercream frosting: In a large bowl, beat the butter until creamy. Gradually add powdered sugar and beat until fluffy. Mix in the cooled caramel sauce (reserve some for drizzling if desired), vanilla, and a pinch of salt. Add heavy cream as needed to achieve a smooth, spreadable consistency.
  5. Assemble the cake: Place one cake layer on a serving plate. Spread a generous layer of buttercream on top. Repeat with the second and third layers. Frost the top and sides of the cake evenly. Drizzle remaining caramel sauce over the top for extra decadence, letting it drip slightly down the sides.

Tips for the Perfect Caramel Cake

Use room temperature ingredients to ensure a smooth, even batter that bakes consistently. When making caramel, be patient—don’t stir the sugar once it begins boiling to avoid crystallization, and remove it from heat as soon as it reaches a deep golden color to prevent burning. Allow the caramel sauce to cool completely before incorporating it into the frosting, or it may cause the buttercream to separate. Level your cake layers with a serrated knife if needed to create a flat, even stack. Chill the cake briefly before applying the final coat of frosting to reduce crumbs and achieve a cleaner finish. For even more flavor, consider brushing the layers lightly with simple syrup before frosting to keep them extra moist.

Variations and Customizations

Add a layer of salted caramel or dulce de leche between each cake layer for added flavor depth. Spice up the batter with a touch of cinnamon or nutmeg for a warm undertone. Replace a portion of the butter in the cake with browned butter for a nuttier taste. Swap the traditional buttercream with a cream cheese caramel frosting for a tangy twist. Garnish with toasted pecans or walnuts for a crunchy contrast, or top the cake with shards of homemade caramel or spun sugar for an elegant presentation. For a boozy version, add a tablespoon of bourbon or rum to the caramel sauce or cake batter. You can even transform this recipe into cupcakes or a sheet cake for easier serving options.

Health Considerations and Nutritional Value

This caramel cake, while irresistibly delicious, is definitely a dessert to be enjoyed in moderation due to its high sugar and fat content. A typical slice can contain approximately 500–600 calories, depending on portion size and exact ingredient quantities. It’s rich in carbohydrates and saturated fats, primarily from the sugar, butter, and cream used in both the cake and frosting. If you’re looking to reduce the calorie load, consider using reduced-fat dairy alternatives, replacing some sugar with natural sweeteners like stevia or monk fruit, or using whole wheat flour to add fiber. For those with dietary restrictions, the cake can be made gluten-free using a 1:1 GF flour blend, or dairy-free with plant-based butter and milk. However, caramel sauce made without dairy can be trickier to get just right, so be sure to use a recipe designed specifically for non-dairy ingredients. Always enjoy treats like this caramel cake as part of a balanced diet that includes fruits, vegetables, and whole grains.

FAQ

Can I make the cake layers in advance?
Yes, the cake layers can be baked up to two days in advance and stored in an airtight container at room temperature or refrigerated. They can also be frozen for up to three months.

Is it necessary to make homemade caramel sauce?
While homemade caramel gives the cake a richer flavor, you can use high-quality store-bought caramel in a pinch. Just make sure it’s thick and not too runny.

Can I use salted butter instead of unsalted?
You can use salted butter, but it may alter the flavor balance slightly. If you do, reduce or omit any added salt in the recipe.

How do I keep my frosting from becoming too soft?
Make sure your caramel sauce is fully cooled before adding it to the buttercream. If the frosting becomes too soft, refrigerate it for 15–20 minutes before spreading.

Why is my caramel sauce grainy?
Grainy caramel is usually caused by sugar crystallization. To prevent this, avoid stirring the sugar once it starts boiling and make sure your utensils are clean and dry.

Decadent Caramel Cake with Fluffy Buttercream Frosting

Decadent Caramel Cake with Fluffy Buttercream Frosting

This decadent caramel cake pairs moist, buttery layers with rich caramel and fluffy buttercream for a truly indulgent dessert. Perfect for special occasions, it’s a timeless treat that delivers homemade comfort and elegance in every bite.
Prep Time 1 hour 30 minutes
Cook Time 28 minutes
Total Time 2 hours 10 minutes
Servings 16

Ingredients
  

  • Caramel Cake Ingredients
  • 2 cups 250 g plain all-purpose flour
  • ¼ cup 30 g cornstarch
  • teaspoons baking powder
  • ½ teaspoon salt skip if using salted butter
  • ¾ cup 170 g unsalted butter, softened to room temperature
  • ¼ cup 55 g neutral-flavored vegetable oil (such as canola)
  • 1 cup 200 g granulated white sugar
  • ½ cup 100 g light brown sugar, packed
  • 3 large eggs at room temperature
  • 1 tablespoon vanilla extract or essence
  • ½ cup 120 g sour cream, at room temperature
  • ½ cup 120 g whole milk, at room temperature
  • Caramel Frosting Ingredients
  • ¾ cup 170 g unsalted butter, softened
  • cups 300 g white granulated sugar
  • 2 cups 510 g evaporated milk (equal to 1½ cans of 12 oz / 340 g each)
  • ¼ teaspoon salt omit if using salted butter
  • cup 80 g cream at room temperature (any type: heavy, whipping, etc.)
  • teaspoons vanilla extract or essence

Instructions
 

Caramel Cake

  • Begin by preheating your oven to 160°C (320°F) with the fan setting on (refer to note 1 if your oven doesn’t have a fan). Prepare two 8-inch cake tins by greasing or lining them—I prefer using my homemade cake release for easy removal.
  • In a separate bowl, sift together the flour, cornstarch, baking powder, and salt. Use a whisk or fork to combine the dry ingredients thoroughly, then set aside.
  • In a large mixing bowl, combine the softened butter, vegetable oil, white sugar, and brown sugar. Using an electric mixer—either hand-held or stand (see note 2)—cream the ingredients together for about 2 minutes until the mixture becomes light and fluffy.
  • Add the eggs one at a time, beating well after each addition (roughly 10–15 seconds between eggs) to ensure they are fully incorporated.
  • Add the sour cream and vanilla extract, and mix until everything is well combined. At this point, put the mixer aside; the remainder of the batter will be mixed by hand to avoid overmixing.
  • Fold in half of the sifted dry ingredients using a spatula, mixing gently until just incorporated. Next, add the milk and fold it in, followed by the remaining dry ingredients, mixing only until the batter is just combined. Be careful not to overmix (see note 3).
  • Evenly divide the batter between the two prepared 8-inch pans. Bake for 28–30 minutes, or until a toothpick inserted into the center of the cakes comes out clean.
  • Once baked, let the cakes rest in their tins for 15–20 minutes, then carefully turn them out onto a wire rack to cool completely before applying the caramel frosting.

Caramel Frosting

  • In a large saucepan set over medium heat, combine the butter, sugar, evaporated milk, and salt. Stir continuously until everything melts and the mixture begins to simmer. Once simmering, reduce the heat to low-medium.
  • Allow the caramel to cook slowly for about an hour, stirring every few minutes to prevent burning. Pay closer attention once the mixture begins to thicken, as this is when it’s most prone to burning. When it reaches a thick, deep golden-brown consistency (see video for reference), add in the cream and vanilla. Stir well until the caramel is completely smooth, then immediately transfer it to a heatproof dish.
  • Let the caramel cool for around 25 minutes before using it to frost the cake. It should still be slightly warm and pourable when applied, as it sets quickly once it begins to cool (refer to note 4 if your caramel is too thick).

Assembly

  • Once the cake layers are completely cooled, level the tops with a serrated knife to ensure flat, even layers.
  • Place the first cake layer onto your serving platter or cake stand. Spread a generous layer of caramel frosting over the top using an offset spatula or knife.
  • Add the second cake layer and cover the top and sides with more caramel frosting (see note 5 if your caramel is still too thin and not setting properly). As the caramel begins to set, it will develop a shiny surface. For a smooth finish, gently run your spatula or knife over the shiny caramel to create a polished look.
  • Decorate the cake however you like and enjoy this rich, decadent caramel delight!

Notes

Note 1: This recipe is designed using a fan-assisted (convection) oven, which tends to bake cakes more quickly and evenly. If your oven doesn’t have a fan function, simply increase the baking temperature to 175°C (350°F) to match the baking time and results described in this recipe 🙂
Note 2: If you’re using a stand mixer, make sure to attach the paddle attachment for mixing the wet ingredients. However, as mentioned in the method, switch to hand mixing for the final steps to ensure a soft, tender crumb.
Note 3: Folding the ingredients gently helps avoid overworking the batter, which limits gluten development and results in a softer cake. Mix only until there are no visible streaks of flour and the batter appears smooth and cohesive.
Note 4: If the caramel frosting has become too thick to spread by the time you’re ready to frost the cake, gently reheat it—either in the microwave in short bursts or on the stovetop over low heat. You can also stir in a splash of cream to loosen the texture as needed.
Note 5: If your caramel seems too runny and isn’t setting properly while frosting, it’s likely still too warm. Allow it to cool for an additional 15–20 minutes until it thickens up enough to spread and hold its shape.
 
 

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