Layered Caramel Dream Cake is the ultimate indulgence for caramel lovers, featuring tender, buttery cake layers sandwiched with velvety caramel filling and finished with a glossy caramel glaze or frosting that melts in your mouth. This show-stopping dessert is rich, decadent, and layered with bold flavor, making it perfect for birthdays, holidays, celebrations, or any time you want to wow guests with a homemade treat that tastes like it came straight from a bakery. Every bite offers a perfect balance of moist cake, creamy sweetness, and a touch of salt, delivering a melt-in-your-mouth texture that lives up to its dreamy name. With multiple layers and generous caramel in every bite, this cake is a true statement dessert and a luxurious centerpiece that is surprisingly achievable with some patience and the right technique.
The History of Layered Caramel Cakes
Layered caramel cakes have deep roots in Southern American baking traditions, especially in states like Georgia, Alabama, and Mississippi, where they’ve been passed down through generations. Historically, these cakes were a labor of love, often made from scratch entirely, including the caramel, which required skill and careful attention. Known for their rich flavor and striking appearance, these cakes were typically reserved for special occasions, church suppers, and holidays. In the early 20th century, cookbooks and church community collections began publishing family caramel cake recipes that emphasized homemade caramel cooked on the stovetop and thin, delicate layers of cake stacked high. Over time, bakers adapted the recipes, incorporating modern conveniences like sweetened condensed milk and stand mixers to save time without sacrificing flavor. The “dream” version of this cake refers to its luxurious upgrades—more layers, creamier caramel, and polished finishes like caramel buttercream or ganache-like glazes—making it a modern classic that still honors its heritage.
Ingredients Breakdown
For the Cake Layers:
- 2¾ cups all-purpose flour: Provides structure and a soft, tender crumb.
- 1 tablespoon baking powder: Helps the cake rise for light, fluffy layers.
- ½ teaspoon baking soda: Balances acidity, especially from the buttermilk.
- 1 teaspoon salt: Enhances the flavor and balances sweetness.
- 1 cup unsalted butter, softened: Adds richness and a tender texture.
- 1½ cups granulated sugar: Sweetens the cake while helping it brown.
- ½ cup packed light brown sugar: Adds a touch of molasses depth to echo the caramel.
- 4 large eggs: Provide structure and richness.
- 1 tablespoon vanilla extract: Enhances the overall flavor.
- 1½ cups buttermilk: Adds moisture and a subtle tang that balances the sweetness.
For the Caramel Filling:
- 1½ cups packed light brown sugar: Creates the base of the rich caramel flavor.
- ¾ cup unsalted butter: Helps thicken the caramel and gives it a smooth finish.
- ¾ cup heavy cream or evaporated milk: Adds creaminess and helps form the filling consistency.
- ½ teaspoon salt: Cuts through the sweetness and enhances the overall taste.
- 2 teaspoons vanilla extract: Rounds out the flavor with warmth and depth.
For the Caramel Frosting or Glaze (optional but recommended):
- 1 cup brown sugar
- ½ cup unsalted butter
- ½ cup heavy cream
- 1½ to 2 cups powdered sugar (for frosting only)
- Pinch of sea salt
- 1 teaspoon vanilla extract
Step-by-Step Recipe
Preheat your oven to 350°F (175°C) and grease and line three 8-inch round cake pans with parchment paper. In a large bowl, whisk together the flour, baking powder, baking soda, and salt, then set aside. In a stand mixer or using a hand mixer, cream the softened butter, granulated sugar, and brown sugar together for 3–5 minutes until light and fluffy. Beat in the eggs one at a time, mixing well after each addition, then add the vanilla extract. With the mixer on low, add the dry ingredients in three additions, alternating with the buttermilk in two additions—beginning and ending with the dry mixture. Mix just until combined, being careful not to overmix. Divide the batter evenly between the prepared pans and smooth the tops. Bake for 25–30 minutes or until a toothpick inserted into the center comes out clean. Allow cakes to cool in the pans for 10 minutes, then transfer to wire racks to cool completely.
To make the caramel filling, combine the brown sugar, butter, cream, and salt in a saucepan over medium heat. Stir constantly until the mixture comes to a gentle boil. Let it bubble for 4–5 minutes, then remove from heat and stir in the vanilla extract. Let it cool to a thick but spreadable consistency before assembling the cake.
To make the caramel frosting or glaze (if using), combine brown sugar, butter, and cream in a saucepan over medium heat. Stir until smooth and bring to a gentle boil. Remove from heat, stir in vanilla and a pinch of salt, and cool slightly. For frosting, whisk in powdered sugar until you reach a fluffy consistency. For a pourable glaze, use less powdered sugar or omit it completely.
To assemble, place one cake layer on a serving plate or cake stand and spread a generous amount of the caramel filling over the top. Repeat with the second and third layers. If using frosting, spread it over the top and sides of the cake. If using glaze, pour it over the top and let it drip down the sides naturally. Garnish with a light sprinkle of sea salt, crushed pecans, or caramel shards for a dramatic finish. Chill the cake for 30 minutes to help it set before slicing.
Tips for the Perfect Layered Caramel Dream Cake
Use room temperature ingredients for smoother mixing and better texture. Be precise when measuring flour—use the spoon and level method to avoid dense layers. Don’t rush the creaming process; properly creamed butter and sugar create a lighter cake. Allow the caramel filling to cool before spreading it between the layers to avoid the cake slipping or collapsing. If your layers are uneven, trim them with a serrated knife to create a level cake. To prevent the cake from sliding, insert a skewer through the center after stacking. When frosting or glazing, use a turntable for even coverage. If you want sharp, clean slices, chill the cake briefly before cutting. Always store leftover cake covered at room temperature for a day or in the refrigerator for up to 5 days. Bring to room temperature before serving for the best flavor and texture.
Variations and Customizations
Add a layer of sliced bananas or cooked apples between the cake and caramel filling for a fruity twist. Use chocolate cake layers instead of vanilla for a chocolate-caramel flavor combo. For a nutty variation, fold toasted pecans or walnuts into the caramel filling or sprinkle them between layers. Add a splash of bourbon or rum to the caramel sauce for a boozy, adult version. Try a salted caramel version by increasing the salt slightly and topping the cake with flaky sea salt. For a lighter version, make a whipped caramel cream filling by folding cooled caramel into whipped cream. Swap the caramel glaze for a cream cheese frosting with a drizzle of caramel on top. You can also bake the batter in sheet pans and cut into thin layers for a Southern-style 12-layer caramel cake.
Health Considerations and Nutritional Value
Layered Caramel Dream Cake is a high-calorie, high-sugar dessert best enjoyed in moderation. A typical slice may contain 450–600 calories depending on the portion size and amount of frosting or filling used, with significant levels of saturated fat and sugar. While delicious, it should be enjoyed as an occasional treat rather than a daily indulgence. For a slightly healthier twist, you can reduce the sugar by 10–15% in the cake batter without compromising the structure. Substitute Greek yogurt or unsweetened applesauce for part of the butter to reduce fat content. Opt for a lighter caramel sauce using coconut milk or dates for natural sweetness. Whole wheat pastry flour can be used for added fiber, though it may make the cake slightly denser. For allergy-conscious eaters, make it nut-free by avoiding garnishes and fillings with nuts, and use a dairy-free butter alternative and plant-based milk to make the cake vegan-friendly. Gluten-free versions can be made using a 1:1 gluten-free flour blend, though the texture may vary slightly.
FAQ
Can I make this cake ahead of time? Yes, the cake layers can be baked a day or two in advance, wrapped tightly in plastic, and stored at room temperature or refrigerated. The caramel filling and frosting can also be made ahead and stored in the refrigerator—just bring to room temperature before using.
Can I freeze the cake? Yes, freeze unfrosted cake layers for up to 2 months. Wrap tightly and thaw at room temperature before assembling. Frosted cake can be frozen in slices, though caramel textures may change slightly.
What if I don’t have buttermilk? You can make a substitute by adding 1 tablespoon lemon juice or white vinegar to 1 cup of milk and letting it sit for 5–10 minutes.
Why is my caramel grainy? Caramel can crystallize if stirred too much or if sugar granules stick to the pan. Use a clean brush dipped in water to wipe down the sides of the saucepan as the sugar cooks.
Can I use store-bought caramel? Yes, high-quality jarred caramel can work in a pinch, but homemade caramel adds a deeper, fresher flavor.
Layered Caramel Dream Cake
Ingredients
For the Cake:
- 2 cups 250 g all-purpose flour
- ¼ cup 30 g cornstarch
- 2½ teaspoons baking powder
- ½ teaspoon salt omit if using salted butter
- ¾ cup 170 g unsalted butter, softened to room temperature
- ¼ cup 55 g neutral vegetable oil (such as canola)
- 1 cup 200 g granulated sugar
- ½ cup 100 g packed light brown sugar
- 3 large eggs at room temperature
- 1 tablespoon vanilla extract
- ½ cup 120 g sour cream, at room temperature
- ½ cup 120 g whole milk, at room temperature
For the Caramel Frosting:
- ¾ cup 170 g unsalted butter, softened to room temperature
- 1½ cups 300 g granulated sugar
- 2 cups 510 g evaporated milk (about 1½ cans of 12 oz / 340 g each)
- ¼ teaspoon salt omit if using salted butter
- ⅓ cup 80 g cream, at room temperature (any variety such as heavy cream or whipping cream will work)
- 1½ teaspoons vanilla extract
Instructions
- Preheat your oven to 160°C (320°F) with the fan setting on. If your oven doesn’t have a fan function, see note 1 for adjustments. Prepare two 8-inch round cake pans by greasing or lining them with parchment paper. (Homemade cake release also works well.)
- In a medium bowl, sift together the flour, cornstarch, baking powder, and salt. Use a whisk or fork to mix everything thoroughly, then set aside.
- In a large mixing bowl, combine the softened butter, vegetable oil, granulated sugar, and brown sugar. Using an electric mixer—either a stand or hand mixer—beat the mixture for about 2 minutes until it becomes light, fluffy, and creamy.
- Add the eggs one at a time, mixing well between each addition (about 10–15 seconds per egg) to fully incorporate them into the batter.
- Next, mix in the sour cream and vanilla extract until fully combined. At this point, set your mixer aside—the rest of the batter will be mixed by hand.
- Add half of the dry ingredients to the wet mixture and gently fold it in with a spatula until just combined. Then pour in the milk and fold again until incorporated. Finally, add the remaining dry ingredients and fold gently, mixing only until no streaks of flour remain. Avoid overmixing to keep the cake light and tender (see note 3).
- Evenly divide the batter between the two prepared cake pans and smooth the tops. Bake in the preheated oven for 28–30 minutes, or until a toothpick inserted into the center comes out clean.
- Once baked, let the cakes cool in the pans for 15–20 minutes, then carefully turn them out onto a wire rack to cool completely before frosting.
Caramel Frosting
- In a large, heavy-bottomed saucepan, combine the butter, granulated sugar, evaporated milk, and salt. Place over medium heat and stir continuously until everything melts and comes to a gentle simmer. Once simmering, reduce the heat to low-medium.
- Let the mixture simmer and thicken slowly for about 1 hour, stirring every few minutes to prevent burning. Pay close attention as it begins to thicken and darken—this is when it’s most prone to scorching. When the caramel has thickened to a spreadable consistency and taken on a deep golden brown color, stir in the cream and vanilla extract. Mix until smooth and immediately pour the caramel into a heatproof bowl.
- Let the caramel cool for about 25 minutes before frosting the cake. You want it to remain slightly warm and pourable, as it sets quickly once applied. (If the caramel is too thick to work with, see note 4 for tips on loosening it.)
Assembly
- Once the cake layers have completely cooled, level the tops with a serrated knife to create flat, even surfaces.
- Place the first cake layer on your serving plate or cake stand. Spread a generous amount of warm caramel frosting on top and smooth it out with an offset spatula or knife.
- Place the second cake layer on top, then cover the top and sides of the cake with the remaining caramel frosting. If the frosting feels too soft or isn’t setting, refer to note 5 for troubleshooting.
- As the caramel begins to set, it will develop a shiny finish. For an ultra-smooth look, gently run a clean offset spatula or knife over the surface once the shine appears. Decorate however you like—add a drizzle of extra caramel, sprinkle with sea salt, or top with nuts—and enjoy your rich, decadent caramel cake!