Creamy Homemade Caramel Frosting – Salted & Perfect

This homemade caramel frosting is so smooth, creamy, and dreamy—I literally ate it by the spoonful! Made with an easy caramel recipe and whipped into a rich condensed milk buttercream, it is perfect for layer cakes, chocolate cakes, and even cupcakes—no candy thermometer needed, just the best caramel flavor in every bite.

This caramel frosting recipe is adapted from our beloved condensed milk buttercream, which I truly believe is better than classic American buttercream. It’s not overly sweet, has absolutely no grittiness, and turns out silky smooth every single time. 

The base uses just two ingredients—butter and condensed milk—making it incredibly simple yet luxurious. The recipe relies on basic pantry staples and the best way to achieve that smooth, creamy texture without a gritty texture.

Once you master this base, you can easily create endless flavor variations, like adding caramel sauce for this caramel frosting with condensed milk. 

We also have other delicious versions on the blog, like coffee and Oreo, or even Indian-inspired flavors like Rasmalai.

And if condensed milk isn’t your thing but you still want a creamy, smooth frosting, you can try our buttercream frosting recipe without powdered sugar as the base—just add caramel sauce like we do in that version!

Ingredients

• 113 gms butter unsalted
• 70 gms sweetened condensed milk
• 100 gms caramel sauce

Ingredient Notes:

• Unsalted Butter: Use room temperature butter for best results—it should be soft but not melty. Unsalted butter gives you full control over the saltiness, especially since caramel sauce may already contain salt.
• Sweetened Condensed Milk: This is the secret to a smooth, creamy, and grit-free frosting. It replaces the need for powdered sugar and gives the buttercream a luxurious texture without being overly sweet like American buttercream.
• Caramel Sauce: We’re using homemade salted caramel sauce that already includes a touch of salt, so there’s no need to add extra salt in this recipe. Just make sure it’s cooled to room temperature before using. You can also use a good-quality store-bought caramel sauce if you prefer—just check the label for salt and adjust accordingly.

For the printable full recipe with step-by-step instructions and measurements, scroll to the end of the post

Step by Step Instructions

Start by adding room temperature unsalted butter to a mixing bowl or to the bowl of a stand mixer fitted with the paddle attachment. Beat it using a handheld electric mixer or stand mixer on medium speed until it turns creamy and pale—this usually takes about 5 to 7 minutes, depending on how soft the butter was to begin with (image 1).

Pause occasionally to scrape down the sides of the bowl with a rubber spatula for even mixing.

Image 2: See the difference! This is how your butter should look after beating—pale, creamy, and fluffy compared to how it started. This step is key to getting that silky, smooth caramel frosting texture.

Next, gradually add sweetened condensed milk, a little at a time. Beat well after each addition to ensure it blends smoothly into the butter without splitting (image 3).

Once fully combined, add the caramel sauce. Make sure the caramel is at room temperature before using. Beat again until the frosting is evenly mixed, fluffy, and silky smooth.

Fill a piping bag and use this homemade frosting to frost on top of cakes, cupcakes, and desserts for beautiful swirls and a smooth finish.

Storage Instrucitons

• Store the caramel frosting in an airtight container in the refrigerator for up to 3 to 4 days.
• Do not store the frosting at room temperature, as it contains butter and condensed milk which can spoil quickly.
• Before using, let the frosting sit at room temperature for about 30 minutes to soften.
• Re-whip the frosting with a hand mixer to restore its light, creamy texture with the perfect consistency.
• To prevent a grainy frosting texture, avoid freezing. 

What to Frost with Homemade Caramel Frosting

This homemade caramel buttercream frosting is incredibly versatile and perfect for:

• Layer cakes like vanilla or chocolate cake, or spice cake. 
• Cupcakes of all flavors for a rich, creamy topping
• Drizzling over brownies or bars for extra decadence
• Filling between cake layers for a luscious surprise
• Frosting cookies or sandwich cookies for a sweet twist
• Frosting bundt cakes or loaf cakes to add flavor and moisture
• This delicious caramel frosting is ideal for frosting coffee cakes, apple cakes, banana cake, quick breads, ice cream toppings,
• Topping pancakes, cinnamon rolls or waffles for a special breakfast treat
• Adding a finishing touch to cheesecakes or tarts
• Its smooth, creamy texture and balanced sweetness make it a perfect match for a wide range of desserts!

Best Tips

• Use room temperature unsalted butter—soft but not melted—for smooth, creamy results.
• Add the condensed milk slowly, a little at a time, to prevent the butter from splitting.
• Make sure your caramel sauce is cooled to room temperature before adding it to the frosting to keep the texture silky and smooth.
• Beat the butter thoroughly until it’s light and pale; this helps create a fluffy frosting.
• Scrape the sides of the bowl frequently during mixing to ensure everything is evenly combined.
• If your frosting feels too soft, chill it briefly in the fridge and then re-whip it before using.
• Use this frosting immediately for the best texture, or store it in the fridge and re-whip it after bringing it to room temperature.
• Experiment by adding flavors like coffee or cocoa powder once you’ve mastered the base.
• Avoid freezing, as it can change the frosting’s texture and make it grainy.

Frequently Asked Questions

Related Recipes

1. Condensed Milk Buttercream
2. Eggless Chocolate Caramel Cake

Wish to Join US for the love of BAKING? Subscribe to our newsletter and Youtube channel. Follow along on Facebook, Instagram, and Pinterest for all the latest updates!