The Ultimate Homemade Caramel Cake is a rich, velvety dessert that celebrates everything we love about caramel—its deep, buttery sweetness, golden color, and nostalgic flavor that takes us right back to family kitchens and childhood indulgences. This cake delivers a moist, tender crumb layered with silky caramel frosting that’s cooked slowly to perfection, creating a luxurious glaze-like texture that sets just enough to form a soft shell around the cake. Whether you’re baking for a special occasion, a holiday table, or simply to satisfy a caramel craving, this cake is the perfect showstopper. Made completely from scratch using simple ingredients and straightforward techniques, this recipe honors traditional Southern baking while offering tips and variations to suit modern kitchens. The Ultimate Homemade Caramel Cake is more than just a dessert—it’s an experience of pure comfort, warmth, and satisfaction that invites everyone to have another slice.
The History of Caramel Cake
Caramel cake has its origins in the American South, where desserts are often generous, rich, and made to be shared at big family gatherings, Sunday dinners, and church picnics. Its history dates back to the early 20th century when resourceful home bakers began experimenting with sugar, milk, and butter to create the rich, golden caramel frosting we now associate with the dish. While the cake base itself may vary—some versions are made with yellow cake, others with buttermilk or sour cream—the unifying feature has always been the caramel frosting. Originally made by boiling milk and sugar together for hours, the process required patience and care, and the results were a thick, intensely flavorful caramel spread between cake layers and poured over the top. Over the decades, caramel cake evolved but never lost its place in Southern baking traditions. Passed down through generations, it became a symbol of love, home, and celebration. Today, it remains a treasured favorite, often appearing at holidays and family reunions, now made more accessible thanks to modern ingredients and kitchen tools, yet still holding onto its classic charm and deep, sweet flavor.
Ingredients Breakdown
Dry Ingredients: 2 cups (250 g) all-purpose flour create the structure of the cake; ¼ cup (30 g) cornstarch softens the flour and makes the crumb finer; 2½ teaspoons baking powder ensure the cake rises well; ½ teaspoon salt balances the sweetness (omit if using salted butter)
Fats and Sugars: ¾ cup (170 g) unsalted butter adds richness and moisture; ¼ cup (55 g) unflavored vegetable oil such as canola makes the cake soft and tender; 1 cup (200 g) white granulated sugar and ½ cup (100 g) light brown sugar sweeten the batter and add depth
Wet Ingredients: 3 large eggs provide structure and richness; 1 tablespoon vanilla extract adds warm flavor; ½ cup (120 g) sour cream keeps the cake moist; ½ cup (120 g) full-fat milk ensures a soft, smooth batter
Caramel Frosting: ¾ cup (170 g) unsalted butter is the base; 1½ cups (300 g) white granulated sugar caramelizes for flavor; 2 cups (510 g) evaporated milk (about 1½ cans of 12 oz / 340 g each) create a creamy texture; ¼ teaspoon salt enhances the caramel flavor (omit if using salted butter); ⅓ cup (80 g) cream—any type—adds richness and smoothness; 1½ teaspoons vanilla extract finish off the frosting with aroma and depth
Step-by-Step Recipe
Start by preheating your oven to 160°C (320°F) with the fan function turned on; if your oven doesn’t have this, see the note on adjusting the temperature. Grease or line two 8-inch cake pans with baking spray or homemade cake release. In a medium bowl, sift together the flour, cornstarch, baking powder, and salt. Whisk to combine and set aside. In a large mixing bowl, combine the butter, vegetable oil, white sugar, and brown sugar. Using a hand or stand mixer, beat the mixture for about 2 minutes until it becomes pale and fluffy. Add the eggs one at a time, mixing for about 10–15 seconds between each addition to ensure they are fully incorporated. Add the sour cream and vanilla extract, and beat again until smooth. Set aside your mixer and fold in half the dry ingredients using a spatula. Once just combined, add the milk and mix gently, then fold in the remaining dry mixture. Be careful not to overmix. Divide the batter evenly between the two pans and bake for 28–30 minutes or until a toothpick inserted in the center comes out clean. Cool the cakes in their pans for 15–20 minutes before turning them out onto a wire rack to cool completely. To make the caramel frosting, place a large saucepan over medium heat and add the butter, sugar, evaporated milk, and salt. Stir until melted and bring to a gentle simmer. Once it begins to bubble, lower the heat and cook for about one hour, stirring regularly to prevent burning. As the caramel thickens and darkens, stir more frequently. Once thick and golden brown, add the cream and vanilla, and stir until smooth. Pour into a heatproof bowl and let cool for about 25 minutes until it’s slightly warm but still spreadable. Level the cooled cakes with a serrated knife, then place one layer on a serving plate and spread a generous amount of caramel frosting over the top. Add the second layer, and cover the top and sides with more caramel. As the caramel sets, it will take on a shiny finish—run a spatula gently over it to smooth the surface and create a glossy look. Decorate as desired and serve.
Tips for the Perfect Caramel Cake
Use room temperature ingredients to ensure the batter mixes evenly. Don’t skip sifting the dry ingredients—it keeps the cake light. Avoid overmixing the batter, especially after adding the flour, to keep the texture soft and tender. Monitor the caramel closely during cooking and stir frequently to avoid scorching, especially as it begins to thicken. If the caramel is too thick to spread, gently reheat it or mix in a bit of cream. If it’s too thin, allow it to cool longer before frosting the cake. Level your cakes for a professional finish and smoother stacking. For clean cuts, chill the frosted cake slightly before slicing.
Variations and Customizations
For a salted caramel version, add a pinch of sea salt to the caramel frosting. Transform the cake into cupcakes by dividing the batter into liners and baking for 18–20 minutes. Add chopped pecans or walnuts between layers for a crunchy contrast. Swap the vanilla for bourbon or maple extract for a unique twist. Top the cake with caramel shards, a caramel drizzle, or edible gold leaf for an elegant presentation. Incorporate banana or apple slices for a fruit-caramel combo. Use browned butter in place of regular butter in the cake batter for a deeper, nutty flavor.
Health Considerations and Nutritional Value
This cake is a rich dessert, high in sugar, fat, and calories, typical of indulgent baked goods. One slice may contain 450–600 calories depending on portion size and frosting amount. While not a low-calorie treat, it can be enjoyed in moderation. For a lighter version, substitute some of the all-purpose flour with whole wheat flour or reduce the sugar slightly. Greek yogurt can replace sour cream for added protein and reduced fat. For dairy-free adaptations, use plant-based butter, milk, and cream alternatives. Note that the caramel frosting is less forgiving with substitutions, so test in small batches if adjusting.
FAQ
Can I make this cake ahead of time? Yes, the cake layers can be baked 1–2 days in advance and stored tightly wrapped at room temperature or in the fridge. The caramel frosting can also be made ahead and gently reheated to soften. Can I freeze this cake? You can freeze the unfrosted cake layers. Thaw fully before frosting. Freezing frosted caramel cake is not recommended due to texture changes. Why is my caramel frosting too runny? It likely needs more time to cool. Let it rest an additional 15–20 minutes. Why is it too thick? Reheat slightly or stir in a bit of cream to loosen. Can I use store-bought caramel? Yes, but ensure it’s thick enough to spread and sets slightly once applied. Can I use a different size pan? Yes, but adjust baking time accordingly. Thinner layers in larger pans will bake faster. Can I add fillings? Absolutely. Try whipped cream, mascarpone, or a layer of chopped nuts for added flavor and texture.
Ultimate Homemade Caramel Cake Recipe
Ingredients
Caramel Cake
- 2 cups 250 g all-purpose flour (plain 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 white sugar
- ½ cup 100 g soft light brown sugar
- 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 full-fat milk, at room temperature
Caramel Frosting
- ¾ cup 170 g unsalted butter, at room temperature
- 1½ cups 300 g granulated white sugar
- 2 cups 510 g evaporated milk (equivalent to 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 type—whipping cream, heavy cream, etc.)
- 1½ teaspoons vanilla extract or essence
Instructions
Caramel Cake
- Begin by preheating your oven to 160°C (320°F) with the fan function on (refer to note 1 if your oven doesn’t have a fan setting). Grease or line two 8-inch cake tins—homemade cake release works great for this.
- In a separate bowl, sift together the flour, cornstarch, baking powder, and salt. Use a whisk or fork to mix until fully combined, then set the dry mixture aside.
- In a large mixing bowl, combine the butter, vegetable oil, white sugar, and brown sugar. Using an electric mixer (either hand-held or stand mixer—see note 2), cream the mixture for about 2 minutes until it becomes light and fluffy.
- Add the eggs one at a time, mixing thoroughly between each addition (approximately 10–15 seconds per egg) to ensure they are fully incorporated.
- Next, add in the sour cream and vanilla extract. Mix until smooth and combined. At this point, put the mixer away as the rest of the batter will be completed by hand.
- Gently fold in half of the dry ingredients into the wet mixture using a spatula, mixing just until combined. Then pour in the milk and fold again until the mixture is just combined. Finally, add the remaining dry ingredients and fold gently, being careful not to overmix (see note 3).
- Evenly divide the batter between the two prepared 8-inch cake tins. Bake for 28 to 30 minutes, or until a toothpick inserted into the center comes out clean.
- Once baked, allow the cakes to cool in their pans for 15–20 minutes. Then carefully turn them out onto a wire rack and allow them to cool completely before applying the caramel frosting.
Caramel Frosting
- In a large saucepan over medium heat, combine the butter, sugar, evaporated milk, and salt. Stir continuously as everything melts together and begins to simmer. Once it starts to bubble, reduce the heat to low-medium.
- Let the caramel mixture cook slowly for around one hour, stirring every few minutes to prevent burning. As the caramel thickens, you’ll need to stir more frequently—this is when it’s most likely to stick or scorch. When the caramel reaches a thick consistency and deep golden brown color (refer to video if available), stir in the cream and vanilla extract. Mix until the caramel is silky and smooth, then immediately transfer it to a heatproof dish.
- Allow the caramel to cool for about 25 minutes before using it to frost the cake. It should still be warm and slightly runny when spreading, as it will begin to set quickly once applied (see note 4 if it thickens too much).
Assembly
- Once the cakes have cooled completely, use a serrated knife to level the tops so the layers are flat.
- Place the first cake layer on your serving plate or cake stand, and spread a generous amount of the caramel frosting over the top using an offset spatula or knife.
- Place the second cake layer on top, then cover the top and sides with the remaining caramel frosting. If the caramel seems too thin or isn’t setting up properly, refer to note 5. As the caramel sets, it will become shiny—at this stage, you can gently run an offset spatula or knife over the surface to smooth it out for a polished finish.
- Decorate as desired and enjoy your rich, buttery, and perfectly sweet homemade caramel cake!