Caramel Cake with Cream Cheese Frosting

This caramel cake recipe takes a classic Southern cake and makes it even better by adding a tangy cream cheese frosting. But don’t worry, there’s still a layer of rich caramel in the middle, just like the original!

I like caramel, but usually in small doses, so I wasn’t sure how I’d feel about this caramel cake. Then I made it for Christmas and—shocker!—it ended up being the highlight of our holiday dessert table. It’s not just delicious, it’s beyond delicious. 

What You’ll Need

If you bake often, you’ll probably have many of these ingredients on hand already. For exact measurements and the full set of directions, check out the recipe card below.

For the Cake:

• Cake flour – Cake flour is lower in protein and has a bit of added cornstarch, resulting in a lighter crumb. For best results, measure by weight or use the spoon and sweep method if you don’t have a digital kitchen scale. Learn more: How to Measure Flour
• Baking powder – To ensure that your cake layers have some lift.
• Salt – I usually bake with regular table salt. Learn more: Types of Salt for Baking
• Sugar – We’ll use both granulated sugar and light brown sugar.
• Unsalted butter – Take the butter out about a half hour before you start the recipe to give it a chance to soften. Learn more: How to Soften Butter
• Eggs – Take the eggs out, too. Room temperature eggs produce a lighter cake.
• Vanilla extract
• Milk – I generally use whole milk, but whatever you have on hand is good.

For the Caramel:

• Light brown sugar
• Evaporated milk – This is not the same as condensed milk, so be sure to get the right product.
• Unsalted butter

For the Frosting:

• Light brown sugar
• Unsalted butter
• Heavy whipping cream – Either heavy whipping cream or heavy cream will work here.
• Cream cheese – Let the cream cheese sit on the counter while the cake is baking so it softens to room temperature.
• Vanilla extract
• Salt
• Confectioners’ sugar – Make sure to sift out any lumps beforehand so that the icing comes out smooth.

How to Make Caramel Cake With Cream Cheese Frosting

If you talk yourself out of making your own cakes because you’re not confident in your decorating skills, you’ll love that this minimalist cake is a breeze to assemble.

For the Cake:

• Prepare. Preheat your oven to 350ºF and grease two 9-inch round cake pans; line them with parchment, then grease the paper.
• Combine the dry ingredients. Whisk the flour, baking powder, and salt in a mixing bowl and set aside.
• Mix the wet ingredients. Use an electric mixer on medium speed to cream the sugars and butter. Then add the eggs one at a time, beating well after each addition. After the eggs are added, mix in the vanilla.
• Combine the dry and wet ingredients. Reduce the mixer speed to low and add the flour mixture in three portions, alternating with two portions of the milk. 

• Bake. Divide the batter between the prepared cake pans, tapping them on the counter to remove air bubbles. Bake for 35 minutes, or until a toothpick inserted into the centers comes out clean. 
• Cool. Transfer the cake pans to a wire rack and let them cool for 10 minutes. Then, carefully remove the cakes from the pans and let them finish cooling on the racks. Place one of the cake layers on a cake plate.

For the Caramel:

• Make the caramel. Combine the brown sugar, milk, and butter in a heavy saucepan over medium heat. Once the sugar has dissolved, continue to cook the caramel without stirring it until a candy thermometer reaches 238ºF. Transfer the caramel mixture to a heat-proof bowl and beat it for 3 minutes, or until it’s thick enough to spread.
• Add the caramel filling to the cake. Spread the caramel onto the layer of cake you’ve placed on the plate. Cover the cake loosely with plastic wrap and refrigerate for about 15 minutes, or until the caramel sets.

For the Frosting:

• Make the caramel for the frosting. In the heavy saucepan you used to make the filling, combine the brown sugar and 4 tablespoons of butter. Cook over medium heat, stirring occasionally, until the sugar has dissolved. Bring the pan to a boil, then whisk in the cream. Transfer the caramel to a heat-resistant bowl and allow it to cool, stirring occasionally.
• Finish the frosting. Use an electric mixer on medium-high speed to beat 6 tablespoons of butter and cream cheese in a large bowl. Beat in the vanilla and salt, then slowly add the caramel and continue beating until the mixture is smooth. Add the confectioners’ sugar a little at a time and continue to beat until there are no lumps. Chill until the frosting is thick enough to spread.

• Assemble the cake. Spread a layer of frosting over the caramel filling, then place the second layer of cake over it. Frost the top and sides, then chill the cake until the frosting has set. Once set, you can cover the cake and return it to the refrigerator for at least 4 hours.
• Serve. Take the cake out of the refrigerator and let it sit at room temperature for about 10 minutes, then serve.

Serving Suggestions

You can make some extra caramel to drizzle over the cake before serving. Although a classic southern caramel cake has no decorative flourishes or garnishes, chopped nuts (a la my Hummingbird Cake) can be used to add a decorative touch without altering the caramel flavor. Spiced Apple Compote would be an excellent accompaniment, too!

How to Store

• Refrigerator. Store any leftover cake in the refrigerator, wrapped tightly. Caramel cake with cream cheese frosting will last in the fridge for up to 4 days. Let it sit at room temperature for about 10 minutes before you dig in! 
• Freezer. Place your cake in the freezer to harden the frosting, then take it out and wrap it tightly in two layers of plastic wrap, followed by a layer of foil. Return it to the freezer and use it within 2 months. When you’re ready to eat the cake, let it thaw overnight in the refrigerator.

More Layer Cake Recipes

• Carrot Cake
• Chocolate Chip Cake
• Lemon Cream Cake
• Butter Pecan Cake
• Strawberry Crunch Cake

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