Soft, spiced layers infused with brown sugar and stacked with ribbons of golden butterscotch make this cake an instant classic. Each bite offers a rich contrast—fluffy yet dense, sweet yet balanced—perfect for slow slices on a cozy weekend or celebrating milestones with a touch of elegance. It’s the kind of cake that doesn’t need a reason, just an occasion.

Ingredient Breakdown
The magic begins with butter, sugar, and sour cream. Butter provides richness, brown sugar lends a molasses-like depth, and sour cream contributes moisture and subtle tang. This trio ensures the crumb is moist and flavorful without being overly dense.
A touch of ground cinnamon brings warm undertones that amplify the caramel notes in the butterscotch. Paired with vanilla and a pinch of salt, these flavors layer together beautifully for balance and complexity.
While homemade butterscotch is ideal for its creamy, toasty richness, a high-quality store-bought version works well in a pinch. Whichever route you take, make sure it’s smooth and pourable—thick enough to layer, but soft enough to blend into frosting without splitting.
The frosting builds on a classic buttercream base but transforms with the addition of butterscotch sauce. The result is silky, sweet, and luxurious, with just enough salt to keep it from becoming cloying. It spreads like a dream and finishes the cake with a golden, glossy elegance.
Step-by-Step Preparation Guide
To start, thoroughly grease and flour two 8-inch cake pans and line the bottoms with parchment paper. This extra step helps ensure your cake layers release easily and stay intact.
When mixing the batter, beat the butter until it’s creamy, then incorporate the sugars. The mixture should turn light and airy—this step is essential for a soft crumb. Add the eggs and vanilla, and then alternate adding the dry ingredients with sour cream, starting and ending with the flour mixture. Keep the mixer on low and stop as soon as everything is combined to prevent overmixing.
Once the batter is evenly divided into the pans, smooth the tops with a spatula. Bake until the tops are golden and a toothpick inserted into the center comes out clean. Let them rest in the pans for about 20 minutes, then carefully turn them out onto wire racks. If time allows, wrapping and freezing the layers makes frosting smoother and crumb-free.
To make the frosting, start with room temperature butter and sifted powdered sugar. Beat on low first to prevent clouds of sugar, then increase to medium speed for a fluffy finish. The addition of butterscotch sauce transforms the texture, giving it a glossy sheen and luxurious flavor.
When assembling, cut each cake into two even layers using a serrated knife or cake leveler. Spread a generous amount of butterscotch sauce on each layer, stopping short of the edges to prevent overflow. Stack the layers with care, ensuring alignment for an even build.
Apply a crumb coat using an offset spatula—this thin layer locks in loose crumbs and provides a smooth base. Chill until firm, then apply the remaining frosting in sweeping strokes. Finish with swirls or extra butterscotch drizzle if desired.

Recipe Tips
How to avoid overmixing and ensure a moist crumb:
Mix just until the ingredients are combined and smooth. Overworking the batter develops gluten, which can toughen the cake.
The best way to level cake layers for even stacking:
Use a serrated knife or wire cake leveler, and trim off any domed tops. Always slice with a gentle sawing motion.
Freezing layers before frosting: why it helps and how long to chill:
Frozen or chilled layers are easier to handle and less prone to crumbling. Wrap tightly and freeze for 30 minutes before frosting.
Using offset spatulas and turntables for smooth cake finishing:
A turntable allows for smoother, more even icing. Offset spatulas help with precision and make smoothing edges easier.
What to Serve With This Recipe
Pair this rich cake with warm drinks that accentuate its sweetness. A spiced chai, a bold shot of espresso, or a silky milk tea work beautifully. For a chilled pairing, try an iced coffee with caramel syrup.
To lighten the plate, serve alongside a scoop of vanilla bean ice cream or a dollop of whipped cream. Their airy textures balance the dense richness of the cake.
For a fruity twist, garnish with poached pears, stewed apples, or thin slices of caramelized banana. Their natural sweetness brings freshness and contrast without overpowering the butterscotch notes.
Creative Variations
Transform this cake into cupcakes for individual servings—bake for about 18 to 20 minutes and pipe the frosting on top. You can also make it into a loaf cake, layering butterscotch inside and drizzling more over the top.
Add crunch by folding chopped toasted pecans or crushed toffee bits between the layers, giving texture and added flavor with every bite.
To enhance the richness, add a splash of bourbon or dark rum to the butterscotch sauce before incorporating it into the frosting. The warmth of the alcohol complements the deep caramel notes without overwhelming the dessert.
Frequently Asked Questions
Can I use Greek yogurt instead of sour cream?
Yes, full-fat Greek yogurt works well as a substitute. It offers a similar texture and tang, though sour cream adds a slightly richer finish.
Is homemade butterscotch sauce better than store-bought?
Homemade allows for greater control over sweetness and texture, but a premium store-bought sauce saves time and still yields delicious results.
How long does this cake keep at room temperature?
If frosted and layered with butterscotch, it’s best stored in the refrigerator. However, it can sit at room temperature for up to 6 hours when serving.
Can I freeze the finished cake or just the layers?
Yes, both options work. Freeze the cake layers wrapped tightly before assembly, or freeze the fully frosted cake (without decorations) and thaw overnight in the fridge.
This butterscotch cake offers layers of comfort, indulgence, and charm in every forkful. With its moist crumb, silky frosting, and caramel-drizzled richness, it’s a dessert that speaks to any occasion—celebrated or casual. A timeless treat made with intention, and enjoyed with joy.

Ingredients
For the cake:
2 sticks (227 grams) unsalted butter, softened to room temperature
1 cup (227 grams) sour cream or plain yogurt, at room temperature
1 1/2 cups (300 grams) packed light brown sugar
1/2 cup (100 grams) granulated sugar
3 large eggs, at room temperature
2 teaspoons vanilla extract
2 1/2 cups (318 grams) all-purpose flour
2 1/2 teaspoons baking powder
1/2 teaspoon fine salt
1/2 teaspoon ground cinnamon
For the frosting:
2 sticks (227 grams) unsalted butter, softened
2 cups (250 grams) powdered sugar, sifted
1/4 teaspoon fine sea salt (adjust based on butterscotch’s saltiness)
2 teaspoons vanilla extract
1 1/3 cups homemade or store-bought butterscotch sauce, divided
Instructions
Make the cake layers:
Start by preheating your oven to 350°F. Grease and flour two 8-inch round cake pans, then line the bottoms with parchment paper circles to ensure easy release.
In a medium bowl, whisk together the flour, baking powder, salt, and cinnamon until well combined.
In a large mixing bowl, beat the softened butter on high speed with an electric mixer until creamy and smooth, about 1 minute. Add both brown and granulated sugars and continue beating on high for 3 to 4 minutes, until the mixture is pale and fluffy. Add in the vanilla extract and eggs, then beat on medium-high until fully incorporated.
Switch the mixer to low speed and add the dry ingredients in three parts, alternating with the sour cream. Start and finish with the flour mixture, mixing just until no streaks of flour remain. The batter will be thick and rich—do not overmix.
Evenly divide the batter between the two prepared pans and smooth the tops. Bake for about 35 minutes, or until the cakes are golden brown and a toothpick inserted in the center comes out clean. Let the cakes cool in the pans for 20 minutes before turning them out onto wire racks to cool completely. For a smoother frosting experience, wrap and freeze the layers until firm.
Make the frosting:
In the bowl of a stand mixer fitted with the paddle attachment, combine the sifted powdered sugar and softened butter. Mix on low to incorporate, then increase to medium speed and beat for 2 more minutes until fluffy. Add the salt, vanilla extract, and 1/3 cup of the butterscotch sauce. Beat for another 2 minutes until the frosting is smooth and evenly blended.
Assemble the cake:
Use a serrated knife or cake leveler to slice each cooled cake horizontally in half, giving you four thin layers. Place one layer on a cake stand or turntable. Spread about 1/3 cup of butterscotch sauce across the surface, stopping about 1/2 inch from the edges.
Repeat the layering process—cake, butterscotch sauce—until all layers are stacked. Position the final layer upside-down for a flat, smooth top.
Using an offset spatula, apply a thin layer of frosting all over the cake to trap any crumbs. This is your crumb coat. Chill the cake in the refrigerator for 30 minutes or in the freezer for 15 minutes until the layer is firm to the touch.
Finish by applying the remaining frosting in an even, smooth layer around the cake. Decorate as desired, using swirls, drips, or extra butterscotch sauce if preferred.
Serve immediately or store the finished cake in the refrigerator for up to 2 days. Allow it to come to room temperature for about an hour before slicing and serving.

Butterscotch Cake Recipe
Ingredients
For the cake:
- 2 sticks 227 grams unsalted butter, softened to room temperature
- 1 cup 227 grams sour cream or plain yogurt, at room temperature
- 1 1/2 cups 300 grams packed light brown sugar
- 1/2 cup 100 grams granulated sugar
- 3 large eggs at room temperature
- 2 teaspoons vanilla extract
- 2 1/2 cups 318 grams all-purpose flour
- 2 1/2 teaspoons baking powder
- 1/2 teaspoon fine salt
- 1/2 teaspoon ground cinnamon
For the frosting:
- 2 sticks 227 grams unsalted butter, softened
- 2 cups 250 grams powdered sugar, sifted
- 1/4 teaspoon fine sea salt adjust based on butterscotch’s saltiness
- 2 teaspoons vanilla extract
- 1 1/3 cups homemade or store-bought butterscotch sauce divided
Instructions
Make the cake layers:
- Start by preheating your oven to 350°F. Grease and flour two 8-inch round cake pans, then line the bottoms with parchment paper circles to ensure easy release.
- In a medium bowl, whisk together the flour, baking powder, salt, and cinnamon until well combined.
- In a large mixing bowl, beat the softened butter on high speed with an electric mixer until creamy and smooth, about 1 minute. Add both brown and granulated sugars and continue beating on high for 3 to 4 minutes, until the mixture is pale and fluffy. Add in the vanilla extract and eggs, then beat on medium-high until fully incorporated.
- Switch the mixer to low speed and add the dry ingredients in three parts, alternating with the sour cream. Start and finish with the flour mixture, mixing just until no streaks of flour remain. The batter will be thick and rich—do not overmix.
- Evenly divide the batter between the two prepared pans and smooth the tops. Bake for about 35 minutes, or until the cakes are golden brown and a toothpick inserted in the center comes out clean. Let the cakes cool in the pans for 20 minutes before turning them out onto wire racks to cool completely. For a smoother frosting experience, wrap and freeze the layers until firm.
Make the frosting:
- In the bowl of a stand mixer fitted with the paddle attachment, combine the sifted powdered sugar and softened butter. Mix on low to incorporate, then increase to medium speed and beat for 2 more minutes until fluffy. Add the salt, vanilla extract, and 1/3 cup of the butterscotch sauce. Beat for another 2 minutes until the frosting is smooth and evenly blended.
Assemble the cake:
- Use a serrated knife or cake leveler to slice each cooled cake horizontally in half, giving you four thin layers. Place one layer on a cake stand or turntable. Spread about 1/3 cup of butterscotch sauce across the surface, stopping about 1/2 inch from the edges.
- Repeat the layering process—cake, butterscotch sauce—until all layers are stacked. Position the final layer upside-down for a flat, smooth top.
- Using an offset spatula, apply a thin layer of frosting all over the cake to trap any crumbs. This is your crumb coat. Chill the cake in the refrigerator for 30 minutes or in the freezer for 15 minutes until the layer is firm to the touch.
- Finish by applying the remaining frosting in an even, smooth layer around the cake. Decorate as desired, using swirls, drips, or extra butterscotch sauce if preferred.
- Serve immediately or store the finished cake in the refrigerator for up to 2 days. Allow it to come to room temperature for about an hour before slicing and serving.