Decadent Caramel Cake

If you’re looking for a cake that is rich, buttery, indulgent, and absolutely unforgettable, this Decadent Caramel Cake is for you. Two soft, tender layers of golden cake infused with a subtle caramel-like warmth from brown sugar and sour cream, stacked and slathered with the most luscious homemade caramel frosting. Every bite melts in your mouth—sweet, creamy, and just the right amount of indulgent. This cake is made for celebrations but easy enough to whip up when you’re simply craving something truly special.

About The Recipe

Let’s be honest—there are cakes, and then there are caramel cakes. And this one? It’s the kind that makes you close your eyes after the first bite.

My mom and I have always been obsessed with caramel, but for the longest time, we struggled to find the perfect caramel cake recipe that struck that ideal balance—moist and flavorful without being too sweet, rich but still light enough to enjoy every forkful. After countless trials (and even more tastings), we finally landed on the ultimate version.

The cake itself is ultra-soft and pillowy thanks to a blend of plain flour, a touch of cornstarch for extra tenderness, and sour cream to lock in that moisture. But the real star of the show? That dreamy, slow-simmered caramel frosting. It’s silky, smooth, and pours like a golden river over the cake layers. Once it sets, it creates a beautiful shiny finish that tastes as heavenly as it looks.

This is one of those recipes you’ll keep in your back pocket for birthdays, holidays, or even just a cozy weekend bake. And trust me—it’s a total showstopper every single time.

Reasons You Will Love This Caramel Cake

Truly indulgent flavor – The deep, buttery notes of homemade caramel paired with a rich cake base make this dessert unforgettable.
Perfectly moist layers – Thanks to sour cream, oil, and brown sugar, each bite is soft and full of flavor.
That frosting though… – This isn’t your average buttercream. The slow-cooked caramel frosting is silky, thick, and beautifully rich.
Great for any occasion – Whether it’s a birthday, holiday dinner, or casual get-together, this cake always steals the show.
Easier than you think – While it looks fancy, the steps are simple and straightforward—with big payoff!

Equipment Needed

You don’t need anything fancy to pull this cake off—just a few kitchen basics:

Mixing Bowls
Electric Mixer (hand or stand)
8-Inch Cake Tins (two)
Whisk
Spatula
Cooling Rack
Offset Spatula or Butter Knife
Large Saucepan (for the caramel)
Heatproof Dish or Bowl (to cool caramel)

Ingredients

For The Cake:

2 cups (250g) all-purpose flour
¼ cup (30g) cornstarch
2½ teaspoons baking powder
½ teaspoon salt (omit if using salted butter)
¾ cup (170g) unsalted butter, room temperature
¼ cup (55g) unflavored vegetable oil (I like using canola)
1 cup (200g) granulated sugar
½ cup (100g) light brown sugar
3 large eggs, room temperature
1 tablespoon vanilla extract
½ cup (120g) sour cream, room temperature
½ cup (120g) whole milk, room temperature

Ingredient Breakdown:

All-Purpose Flour + Cornstarch – Together, they create a cake flour-like texture for a softer crumb.
Unsalted Butter + Oil – A mix of butter for flavor and oil for moisture makes the cake rich but never dry.
Granulated & Brown Sugar – Brown sugar adds caramel-like depth and extra softness.
Eggs – Provide structure and richness.
Sour Cream – Locks in moisture and adds subtle tanginess.
Milk – Keeps the batter smooth and bake even.
Vanilla Extract – Rounds out the flavor and enhances the caramel notes.

For The Caramel Frosting:

¾ cup (170g) unsalted butter, room temperature
1½ cups (300g) granulated sugar
2 cups (510g) evaporated milk (1½ cans)
¼ teaspoon salt (omit if using salted butter)
⅓ cup (80g) cream (heavy, whipping, or even single cream works!)
1½ teaspoons vanilla extract

Ingredient Breakdown:

Butter & Sugar – The classic base of a deep, rich caramel.
Evaporated Milk – Gives the caramel its signature smooth texture.
Cream – Helps loosen the frosting just enough to pour and spread.
Vanilla & Salt – Balances out the sweetness with warmth and complexity.

How To Make The Perfect Caramel Cake

Instructions – For The Cake

Preheat your oven to 160°C (320°F) with the fan on. If you don’t have a fan setting, set your oven to 175°C (350°F).
Prepare your pans by greasing or lining two 8-inch round cake tins. Set aside.
Whisk dry ingredients: In a medium bowl, sift together flour, cornstarch, baking powder, and salt. Mix well and set aside.
Cream butter, oil, and sugars: In a large mixing bowl, beat together the butter, oil, white sugar, and brown sugar using an electric mixer. Mix for about 2 minutes until light and creamy.
Add eggs: Crack in the eggs one at a time, beating for 10–15 seconds between each. This helps create a smooth, well-emulsified batter.
Mix in sour cream and vanilla: Once the eggs are fully incorporated, beat in the sour cream and vanilla extract until well combined.
Combine wet and dry: Set aside the mixer. Using a spatula, gently fold in half of the dry mixture until just combined. Add in the milk, fold again, then finish by folding in the remaining dry mix. Be careful not to overmix—just fold until there are no visible streaks.
Divide and bake: Pour the batter evenly into your prepared cake tins. Bake for 28–30 minutes, or until a toothpick inserted in the center comes out clean.
Cool the layers: Let the cakes cool in the tins for 15–20 minutes, then turn out onto a wire rack to cool completely before frosting.

Pro Tip: Level the tops of the cake layers with a serrated knife if needed to ensure smooth stacking.

Make The Caramel Frosting

This frosting is what takes this cake from good to unforgettable. It’s rich, glossy, and completely irresistible.

In a large saucepan over medium heat, combine butter, sugar, evaporated milk, and salt.
Stir continuously as the ingredients melt together and come to a gentle simmer.
Once simmering, reduce the heat to low-medium. Let the mixture bubble gently, stirring every few minutes.
Allow the caramel to slowly thicken for about 1 hour. You’ll notice it turning a deep golden brown and becoming syrupy and glossy.
Once thickened, stir in the cream and vanilla extract. Mix until the caramel is smooth and shiny.
Pour the finished caramel into a heatproof bowl. Let it cool for about 25 minutes before using—it should still be warm and spreadable but not too runny.

Assemble the Cake

Once the cake layers are completely cool, level the tops with a serrated knife if necessary to ensure even stacking.
Place one cake layer onto a cake stand or serving platter.
Spread a generous layer of the warm caramel frosting on top using an offset spatula or butter knife. Don’t worry if it drips down the sides—that’s part of the charm!
Place the second cake layer on top and repeat, frosting the top and sides with more caramel.
As the caramel cools, it will begin to set and develop a gorgeous shiny finish. To smooth it out, gently run your spatula over the top once it starts to firm up.

Decorating Ideas

This cake is already a showstopper on its own, but if you’re in the mood to dress it up a bit, here are some fun ideas:

Drizzle with extra caramel sauce for dramatic flair.
Top with a sprinkle of flaky sea salt for that irresistible salted caramel vibe.
Add a border of toasted pecans or walnuts for crunch and contrast.
Use chocolate curls or mini chips for a chocolate-caramel combo.
If you want to get fancy, pipe rosettes or swirls with any leftover caramel or a simple buttercream.

FAQs and Troubleshooting

Can I make this cake ahead of time?
Absolutely! You can bake the cake layers a day in advance and wrap them tightly in plastic wrap once cooled. The caramel frosting can also be made a day ahead—just warm it gently to loosen before frosting.

Can I freeze the cake?
Yes! Once fully assembled and cooled, this cake freezes beautifully. Wrap slices or the whole cake in plastic wrap and freeze for up to 2–3 months. Thaw in the fridge or at room temperature.

Why is my caramel frosting grainy or crystallized?
Grainy caramel can happen if the sugar cooks too fast or isn’t stirred enough. To prevent this, make sure to stir continuously when the mixture starts to simmer and cook it low and slow.

What if the caramel frosting is too thick to spread?
No problem! Just reheat it slightly over low heat or microwave in short bursts, stirring in between, until it reaches a spreadable consistency again.

Can I make cupcakes instead of a full cake?
Definitely. This recipe will yield about 18–20 cupcakes. Fill cupcake liners ¾ of the way and bake at 160°C (320°F) for 18–20 minutes.

How To Store

At room temperature: Store the cake in an airtight container for 2–3 days.
In the fridge: Keep it chilled for up to a week. Bring it to room temp before serving for the best texture.
In the freezer: Wrap individual slices or the whole cake and freeze for up to 3 months.

And there you have it—Decadent Caramel Cake that’s as impressive as it is delicious. Whether you’re serving it up for a celebration or just treating yourself on a cozy weekend, this cake never disappoints.