This Old Fashioned Southern Caramel Layer Cake with its moist yellow cake layers topped with an easy homemade caramel frosting is a long-time favorite of everyone in our family. It’s sure to be a hit with your family, too!
When was the last time you had a Caramel Layer Cake? It’s one of those old-fashioned recipes that younger cooks don’t bother with much these days.

I always think of caramel layer cake as a uniquely Southern dessert. Actually more of a confection than a cake, really.
If you’re looking for a comfort food cake recipe that will transport you back to the good ol’ days, this recipe is perfect. It’s an old-fashioned layer cake with an easy homemade caramel frosting made from scratch.
A moist yellow cake layer with a creamy burnt sugar frosting decorated with pecan halves is something that turns up at nearly every family or church gathering in my part of the south.
It also makes regular appearances at birthdays and Christmas. It was one of my Daddy’s favorites, and it’s on BeeBop’s list of the best cakes.
But I have to tell you a secret. I don’t make the traditional burnt sugar caramel. I have a workaround for it! It’s a sweet “caramel” buttercream made with brown sugar.

As you know, genuine caramel frosting requires the cook to “burn” a small amount of sugar in a cast iron pan. The burnt sugar is then incorporated into the remaining sugar, butter, and milk to produce a rich caramel frosting. You need some experience to know exactly when the burnt sugar is at the right stage. Too much cooking and it will scorch; too little and the frosting is pale and tasteless.
I never could get the burnt sugar to just the right color and incorporated into the other ingredients the right way. I either burned the sugar, or the frosting turned out grainy. Neither is a good thing.
So I gave up trying to make caramel frosting for a long time, and then years ago, I saw a recipe in the local newspaper for a caramel frosting that didn’t need the burnt sugar step, and that’s the recipe I still use.
Trust me that you won’t be able to taste the difference in your finished frosting and no one ever needs to know that you didn’t make this with burnt sugar!
Let me just say one thing before I get to the recipe. If you’re on a diet, you may as well leave now and not look back.
This is not diet food. This is the opposite of diet food. But, oh my gosh, is it good! And for the record, when I cooked this recipe, we each had one slice of this cake and the rest went to work with BeeBop. Okay, maybe two, but I promise the majority of it went elsewhere :-)
Recipe Snapshot
Cuisine: Southern
Cooking Method: Stovetop, Oven
Total Time: 45 Minutes
Servings: 16
Primary Ingredient(s): Buttermilk, sugar, eggs, flour, vanilla, brown sugar, evaporated milk, confectioner’s sugar
Skill Level: Easy
What You’ll Like About This Recipe
- It’s probably unlike any cake you’ve had before. For most non-southerners, caramel icing is a new experience. Once you taste it, it’s hard to turn back :-)
- Definitely a crowd pleaser! Once caramel cake shows up at the party, vanilla and chocolate take a back seat.
- Easy to make with readily available ingredients.
WHAT PEOPLE ARE SAYING …
“I made this cake as one of the desserts at my sister’s for Thanksgiving Dinner. I almost had to fight to get a piece to take home! Everyone loved it!!! Absolutely delicious!”
— Val
Tools You’ll Use
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Ingredient Notes

Honestly, there’s not much to comment on in the ingredients. You probably have everything you need in your pantry right now. Just make sure it’s all at room temperature for the best results.
The complete ingredient list with detailed measurements is included in the printable recipe card at the bottom of this post.
You’ll also find this recipe in my cookbook!
You can see this recipe on pages 260-261 of my cookbook, My Southern Table! Get your signed copy today.

How to Make Caramel Layer Cake
Make the Cake Layers
You have a couple of options for the yellow cake layers. Since you’re making a homemade icing, you could always take a shortcut and use a boxed yellow cake mix. If you use a mix, try adding an extra egg and a stick of melted butter in place of the oil. Your boxed cake will taste homemade. Trust me.
To make delicious from scratch cake layers, use your favorite recipe or follow mine.
- Preheat the oven to 350 degrees F. Grease and flour two 8- or 9-inch cake pans and set them aside.


- Stir the baking soda and buttermilk together and set that aside.
- Sift together the flour, baking powder, and salt. Set aside.



- Cream the butter, shortening, and sugar, beating until fluffy.
- Add the eggs one at a time, beating well after each addition.
- Add the cornstarch to the mixture and beat until well incorporated.



- With the mixer on low speed, add the flour mixture alternately with the buttermilk-soda mixture beginning and ending with the flour mixture.
- Slowly mix in the vanilla extract.

- Divide the batter evenly between the two prepared pans. Bake for 20 to 25 minutes or until a tester comes out clean.
- Remove from the oven and cool in the pans for 10 minutes. Turn the layers out onto a baking rack to cool completely before starting the frosting.
👉 PRO TIP: The layers must be completely cooled before frosting the cake. It’s best if you let the layers rest well-wrapped in the fridge overnight.
Make the Frosting

- Sift the confectioner’s sugar (powdered sugar) and set it aside.


- Place the butter, brown sugar, and evaporated milk in a large, heavy saucepan over medium-high heat and melt the ingredients, stirring occasionally.
- Once the mixture begins to bubble, allow it to boil for approximately two minutes, stirring constantly. Watch carefully to avoid burning.
- Remove the pan from the heat and stir in the vanilla and confectioner’s sugar.


- Immediately transfer to the bowl of a stand mixer and beat until the frosting is smooth and begins to lose its sheen (this may take as much as 20 minutes to achieve). The frosting is ready to spread when it is still barely warm but holds its shape.
Assemble the Cake
- To frost the cake, spread a small amount of frosting on the cake plate or cake stand you’re using. Add a layer, top side down. Spread the layer with about one-third of the frosting. Place the second layer, top side up, on top of the bottom layer. Add the remaining frosting to the top of the cake and use a spoon, spatula, knife, or offset spatula to frost the top, spreading the frosting down and around the side of the cake. Add pecan halves around the outside top of the cake as a garnish.

Serving Suggestion
If you’ve never planned a menu entirely around a dessert, this recipe just might give you the inspiration to do that! For the main course, you might serve a pot roast, butter roasted chicken, or fried chicken. For sides, I’d suggest green beans or potatoes au gratin. Once dinner is over, reveal your masterpiece – this Caramel Cake!
More Old Fashioned Dessert Recipes
Questions About Southern Caramel Layer Cake
To make Caramel Cake Cupcakes, adjust the baking time to 18-20 minutes. You should have about 24 cupcakes from this recipe. Frosting cupcakes is easiest with a piping bag.
This Caramel Cake will stay fresh for four to five days. I don’t usually refrigerate it; just make sure it’s in a tightly closed container. If you’d rather store it in the fridge, be sure to take it out an hour in advance of serving to allow it to come to room temperature.
I think you can’t go wrong with Betty Crocker Super Moist Butter Recipe Yellow Cake Mix. Remember to add an extra egg and substitute the oil with melted butter.

Have a question or thought to share?
If you have a question about the recipe or if you’ve made it and want to share how it turned out, I would truly enjoy hearing from you. Just scroll down to leave a comment or add your star rating.
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Recipe
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Old Fashioned Southern Caramel Layer Cake
Ingredients
For the Cake Layers
- ¾ teaspoon baking soda
- ¾ cup buttermilk
- ⅓ cup butter
- ⅓ cup shortening
- 1 cup sugar
- 3 eggs
- 2 tablespoons cornstarch
- 2 cups all-purpose flour
- 1 teaspoon baking powder
- Pinch of salt
- 1 teaspoon vanilla extract
For the Caramel Frosting
- 1 cup butter (2 sticks)
- 2 cups light brown sugar
- ½ cup evaporated milk
- 1 teaspoon vanilla extract
- 4 cups confectioner’s sugar
Optional Garnish:
- pecan halves
Instructions
Make the Cake Layers
- Preheat the oven to 350F. Grease and flour two 9-inch cake pans and set aside.
- Stir the baking soda and buttermilk together and set that aside.
- Sift together the flour, baking powder and salt. Set aside.
- Cream the butter, shortening and sugar beating until fluffy.
- Add the eggs at a time beating well after adding each.
- Add the cornstarch to the mixture and beat until well incorporated.
- With mixer on low speed, add the flour mixture alternately with the buttermilk and soda mixture beginning and ending with the flour mixture.
- Add the vanilla extract.
- Divide the batter evenly between the two prepared pans. Bake for 20 to 25 minutes or until tester comes out clean.
- Allow the layers to cool completely (overnight is best) before adding the frosting.
Make the Frosting
- Sift the confectioner’s sugar and set aside.
- Place the butter, brown sugar and evaporated milk in a large heavy saucepan over medium-high heat and melt the ingredients stirring occasionally.
- Once the mixture begins to bubble allow it to boil for approximately two minutes stirring constantly. Watch carefully to avoid burning the mixture.
- Remove the pan from the heat and stir in the vanilla and confectioner’s sugar.
- Immediately transfer to the bowl of a stand mixer and beat until the frosting is smooth and begins to lose its sheen (this often takes as much as 20 minutes to achieve). The frosting is ready to spread when it is still barely warm but holds its shape.
- Frost the cake layers adding pecans halves for garnish if you like.
Notes
- This cake will stay fresh for four to five days unrefrigerated in a tightly closed container. If you choose to store it in the fridge, be sure to take it out an hour in advance of serving to allow it to come to room temperature.
- If you don’t want to bake the layers from scratch, you can’t go wrong with Betty Crocker Super Moist Butter Recipe Yellow Cake Mix. Remember to add an extra egg and substitute the oil with melted butter for a more homemade taste.
Nutrition Information
Nutrition information is calculated by software based on the ingredients in each recipe. It is an estimate only and is provided for informational purposes. You should consult your healthcare provider or a registered dietitian if precise nutrition calculations are needed for health reasons.
— This post was originally published on May 6, 2010. It has been updated with new photos and additional information.









I made this exactly as written and my cake layers were very very thin. Tried a second time with same results. Disappointed. The icing is being made as I type. Hopefully not a total loss.
I’m sorry to hear that! This recipe should produce standard cake layers, so something may have gone sideways. Common culprits are using pans that are too large, expired baking powder, or mismeasuring flour (scooping vs. spooning can make a big difference). I hope the caramel icing turned out beautifully. It’s a long-time favorite!