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The Best Southern Caramel Cake with Creamy Homemade Caramel Icing

Close-up of a slice cut from a multi-layered caramel cake, showing thick caramel filling and topping.

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Create a truly decadent, melt-in-your-mouth Southern Caramel Cake. This recipe delivers incredibly moist vanilla cake layers topped with a rich, buttery caramel icing that balances sweetness perfectly for a showstopper dessert.

Ingredients

Scale
  • For the Moist Cake:
  • 1 3/4 cups all-purpose flour
  • 1 1/2 teaspoons baking powder
  • 1/2 teaspoon salt
  • 1 cup (2 sticks) unsalted butter, softened
  • 1 3/4 cups granulated sugar
  • 4 large eggs
  • 1 teaspoon vanilla extract
  • 1 cup whole milk
  • For the Homemade Caramel Icing:
  • 1 cup (2 sticks) unsalted butter
  • 1 cup packed light brown sugar
  • 1/2 cup whole milk
  • 1 teaspoon vanilla extract
  • 3 1/2 cups powdered sugar, sifted
  • 1/4 teaspoon salt
  • For Assembly (Optional Drizzle):
  • 1/2 cup granulated sugar
  • 2 tablespoons water
  • 2 tablespoons heavy cream

Instructions

  1. Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
  2. Prepare the cake: In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.
  3. In a large bowl, beat the softened butter and granulated sugar with an electric mixer until light and fluffy, about 3 minutes.
  4. Beat in the eggs one at a time, mixing well after each addition. Stir in the vanilla extract.
  5. Gradually add the dry ingredients to the wet ingredients, alternating with the milk, beginning and ending with the dry ingredients. Mix until just combined; do not overmix.
  6. Divide the batter evenly between the prepared pans. Bake for 30 to 35 minutes, or until a wooden pick inserted into the center comes out clean.
  7. Let the cakes cool in the pans for 10 minutes before inverting them onto a wire rack to cool completely.
  8. Make the Homemade Caramel Icing: In a medium saucepan, melt the butter over medium heat. Add the brown sugar and milk. Bring the mixture to a boil, stirring constantly, and let it boil for exactly 1 minute. Remove from heat and let it cool for 10 minutes.
  9. Whisk the vanilla extract into the slightly cooled caramel mixture.
  10. Gradually add the powdered sugar and salt to the caramel mixture, beating until smooth and creamy. If the icing is too thick, add a teaspoon of milk; if too thin, add a little more powdered sugar.
  11. Assemble the cake: Place one cooled cake layer on a serving plate. Spread about one-third of the icing evenly over the top. Place the second layer on top. Frost the top and sides of the entire cake with the remaining icing.
  12. For an optional caramel drizzle, combine the 1/2 cup sugar and water in a small saucepan. Cook over medium heat without stirring until the sugar dissolves and turns a deep amber color. Remove from heat, carefully whisk in the heavy cream (it will bubble), and let it cool slightly before drizzling over the finished cake.

Notes

  • For an extra moist cake, you can poke holes in the warm layers and brush them lightly with a simple caramel sauce before frosting.
  • If you prefer a salted caramel flavor, add 1/2 teaspoon of flaky sea salt to the finished icing.
  • This cake is best served at room temperature for the softest texture.

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