Easy Butterscotch Cake

If you’re looking for a cake that’s buttery, rich, and packed with cozy flavor, this Easy Butterscotch Cake is exactly what you need. With three tender layers of golden cake infused with butterscotch pudding, brown sugar, and a hint of rum extract, it’s the kind of dessert that feels like a warm hug. Frosted with a silky butterscotch buttercream and finished with a glossy butterscotch ganache drip, this cake is just the right mix of nostalgic and elevated. It’s elegant, flavorful, and surprisingly simple to make from scratch.

About The Recipe

Butterscotch is one of those underrated flavors that doesn’t always get the spotlight it deserves—and I was determined to change that. So one afternoon, my mom and I decided it was time to give butterscotch the moment it deserves in cake form.

We wanted this recipe to be easy enough for a weekend bake but special enough for a celebration. So we took inspiration from classic layer cakes and added a few little tricks to boost the flavor: instant butterscotch pudding mix in the batter, a splash of rum extract for warmth, and a generous swirl of melted butterscotch in the frosting.

The result? A cake that’s buttery, soft, and full of flavor in every bite. And that butterscotch ganache drip on top? It’s like the icing on the cake—literally. Whether you’re baking it for a birthday, holiday, or just because you’re craving something a little extra, this cake is a guaranteed winner.

Reasons You Will Love This Butterscotch Cake

Full of cozy butterscotch flavor – Brown sugar, pudding mix, and melted chips make this cake irresistibly rich.
Super soft and moist layers – Thanks to butter, oil, and milk, every bite is melt-in-your-mouth tender.
Frosted with a luscious butterscotch buttercream – Creamy, fluffy, and perfectly sweet.
Topped with a beautiful butterscotch drip – Adds elegance and even more flavor.
Perfect for any celebration – From birthdays to fall gatherings, this cake always impresses.
Surprisingly simple to make – Even with three layers, it’s straightforward and beginner-friendly.

Equipment Needed

Here’s everything I used to make this cake a breeze:

3 x 8-inch Cake Pans
Mixing Bowls
Stand Mixer or Electric Hand Mixer
Whisk & Rubber Spatula
Measuring Cups & Spoons
Serrated Knife (for leveling)
Offset Spatula & Bench Scraper
Microwave-Safe Bowl (for ganache)
Cake Plate or Stand
Spoon (for drip control)

Ingredients

For The Cake Layers:

2½ cups all-purpose flour
1 (3.4 oz) packet butterscotch instant pudding mix
3½ teaspoons baking powder
½ teaspoon salt
¾ cup unsalted butter, softened
¾ cup light brown sugar, packed
¾ cup granulated sugar
3 tablespoons vegetable oil
1 teaspoon vanilla extract
1 teaspoon rum extract
4 large eggs
1¼ cups whole milk

Ingredient Notes:

Butterscotch Pudding Mix – Adds instant flavor and moisture to the cake.
Brown Sugar + Rum Extract – Bring out that deep, classic butterscotch flavor.
Vegetable Oil + Milk – Help keep the cake light, moist, and tender.

For The Butterscotch Frosting:

1¼ cups unsalted butter, softened
1 (11 oz) bag butterscotch chips, melted and slightly cooled
6 cups powdered sugar
¼ cup + 2 tablespoons heavy whipping cream

Ingredient Notes:

Melted Butterscotch Chips – Infuse the buttercream with rich, smooth flavor.
Powdered Sugar + Cream – Make the frosting light, fluffy, and easy to spread.

For The Butterscotch Drip:

½ cup butterscotch chips
3 tablespoons heavy whipping cream

Pro Tip: Use a spoon to gently guide the drip over the edges for maximum control and a clean finish.

How To Make A Perfect Butterscotch Cake

Step 1: Prepare and Bake the Cake Layers

Preheat your oven to 350°F (175°C) and prep three 8-inch cake pans. I like to grease them generously with shortening, then dust with flour to ensure nothing sticks.
In a medium bowl, whisk together the flour, butterscotch pudding mix, baking powder, and salt. Set this dry mix aside.
In the bowl of a stand mixer (or using a hand mixer), cream the softened butter with the brown sugar and granulated sugar until light and fluffy—this should take about 2–3 minutes.
Add in the vegetable oil, vanilla extract, and rum extract. Mix until just combined.
Beat in the eggs one at a time, making sure each is fully incorporated before adding the next.
With the mixer on low, add in half of the dry ingredients. Mix just until the dry spots disappear.
Slowly pour in the milk and continue mixing until smooth.
Finish by adding the remaining dry ingredients and mix just until no streaks remain. Don’t forget to scrape down the sides and bottom of the bowl so everything is well blended.
Divide the batter evenly between the three prepared pans and gently tap them on the counter to release any trapped air bubbles.
Bake for 22–25 minutes or until a toothpick inserted into the center comes out clean.
Allow the cakes to cool in their pans for 10 minutes before turning them out onto a wire rack to cool completely.

Step 2: Make the Butterscotch Frosting

In the bowl of a stand mixer fitted with the paddle attachment, beat the softened butter until it’s pale and fluffy.
Add in the melted butterscotch chips and mix on medium-high speed until the mixture is fully combined and creamy.
Gradually add in half of the powdered sugar and mix until no dry spots remain.
Add in the remaining powdered sugar, then increase the speed and beat until everything is well combined.
Pour in the heavy cream and whip the frosting on high for 3–4 minutes, until it’s light, fluffy, and perfectly spreadable.
If the frosting is too thick, you can add an extra tablespoon or two of cream to loosen it slightly.

How To Assemble and Decorate

Step 3: Stack and Frost the Cake

Once your cake layers are fully cooled, use a serrated knife to level the tops if needed.
Place the first cake layer face-down on your cake plate or stand. Add about ¾ cup of frosting on top and spread it evenly with an offset spatula.
Repeat with the second layer, then top with the final layer.
Apply a thin crumb coat around the outside of the cake to seal in any loose crumbs. Chill in the fridge for 10–15 minutes to set.
Once chilled, apply the remaining frosting and smooth it out with a bench scraper or offset spatula. If you’d like to pipe frosting on top, reserve about ¾ cup of the frosting.

Step 4: Make the Butterscotch Drip

In a microwave-safe bowl, combine the butterscotch chips and heavy cream.
Microwave in 30-second intervals, stirring in between, until melted and smooth.
Let the ganache cool slightly—it should be pourable but not too hot.
Remove the chilled cake from the fridge and use a spoon to carefully drip the ganache around the edges. Then fill in the center and smooth out the top.
Pipe any remaining frosting in swirls around the top for a decorative touch.

Refrigerate until ready to serve, then slice and enjoy!

FAQ’s and Troubleshooting

Can I use store-bought butterscotch sauce instead of making the drip?
Yes! While homemade ganache gives the best consistency, store-bought butterscotch sauce works just fine in a pinch.

Can I make this cake in advance?
Absolutely. The layers can be baked a day ahead, wrapped, and stored at room temp. The frosted cake also holds up beautifully in the fridge for 2–3 days.

Why is my cake dry?
This usually happens from overbaking. Keep an eye on the oven and pull the cakes out as soon as a toothpick comes out clean or with just a few moist crumbs.

What can I substitute for rum extract?
You can skip it altogether or replace it with a bit more vanilla extract. It adds warmth but isn’t essential.

How To Store

In the fridge: Store the frosted cake in an airtight container or cake dome for up to 3 days. Let it come to room temperature before serving for the best flavor and texture.
In the freezer: Wrap unfrosted cake layers tightly and freeze for up to 2 months. Thaw in the fridge overnight and frost as usual.

And there you have it—an Easy Butterscotch Cake that’s rich, fluffy, and totally unforgettable. Whether you’re baking for a celebration or just because you’re craving something sweet and cozy, this cake is always a good idea.