Scrumptious Dairy Free Butterscotch Cake

Name: Scrumptious Dairy Free Butterscotch Cake
Prep time: 10 min
Cook time: 30 min
Total time: 40 min
Ingredients: 250 grams Self Raising Flour; 250 grams Brown Sugar (see note); 1 tsp Baking Powder; 4 Eggs ((large - see note)); 250 grams Plant Based Butter (unsalted); 175 grams Icing Sugar; 25 grams Brown Sugar (see note); 2 tbsp Plant Based Milk; 100 grams Plant Based Butter (unsalted); 1 tsp Vanilla Bean Paste

Looking for a cake that’s indulgent, allergy-friendly, and simple to make? This dairy free butterscotch cake is soft, golden, and topped with a rich, creamy vegan butterscotch buttercream. Perfect for birthdays, parties, or a cozy weekend treat, this recipe is one you’ll return to again and again.

Jump to Recipe

Even if you’re not dairy-free, the recipe includes easy substitutions so anyone can enjoy it. Using the all-in-one method, this cake comes together in just 40 minutes, so you can go from mixing bowl to plate without any stress.

Close up of two slices of butterscotch cake on a cutting board.

Jump To

Why This Butterscotch Cake is Special

Butterscotch has always held a special place in my heart. Its warm caramel and toffee flavours are comforting and indulgent, yet it’s not overly sweet, which makes it perfect for pairing with tea or coffee. Growing up in the UK, I adored a candy bar called Caramac – a melt-in-the-mouth, caramel-like treat that I longed to recreate once I developed a dairy intolerance.

Over the years, I experimented endlessly with plant-based ingredients, testing different combinations of sugar, butter, and flavouring. This cake is the culmination of those experiments: it captures that nostalgic Caramac flavour while remaining completely allergy-friendly.

Why You’ll Love This Cake

This cake isn’t just delicious – it’s versatile. You can enjoy it as a sheet cake for a party, cut into small squares for kids’ lunchboxes, or even use the vegan buttercream for cupcakes or other cakes. Its soft, golden crumb paired with the rich butterscotch topping is genuinely irresistible, and it’s one of those recipes that always elicits compliments and requests for seconds.

Quick and easy: From prep to plate in just 40 minutes.
Allergy-friendly: Completely dairy-free, with vegan options.
Soft and fluffy: Self-raising flour and careful mixing create a tender crumb.
Rich butterscotch flavour: Sweet, caramelly, and comforting.
Versatile: Works as a sheet cake, traybake, or layer cake.
Kid-approved: Perfect for parties or after-school treats.
Customizable: Ingredient substitutions for gluten-free, vegan, or non-dairy diets.

The History of Butterscotch

Butterscotch dates back to mid-1840s Yorkshire, UK, where it was originally made using butter, sugar, and treacle. It was a treat that quickly spread beyond the region, eventually gaining popularity in North America in the early 20th century. Over time, recipes evolved to include cream, vanilla, salt, and even corn syrup. Today, you can enjoy butterscotch in countless forms: sauces, puddings, chips, and, of course, as a flavourful buttercream.

The rich, slightly earthy sweetness of brown sugar paired with butter is what gives butterscotch its distinctive flavour. Unlike caramel, which is made from white sugar and cream, butterscotch has deeper, more complex notes that make it perfect for baking. In this cake, the vegan buttercream enhances those notes while keeping the recipe entirely dairy-free, making it a truly modern take on a classic flavour.

Ingredients and Substitutions

I weigh all ingredients for accuracy, ensuring a perfect cake every time. Below are the ingredients with optional substitutions to suit different dietary needs:

Showing the dairy free butterscotch cake ingredients.

Dry Ingredients

Self Raising Flour: Creates a light texture and fluffy cake. For gluten-free, use your preferred 1:1 blend. If you don’t have any in your pantry, follow my easy guide to make your own version. This guide includes regular and gluten-free variations.
Light Brown Sugar: Adds rich caramelly notes in this recipe. Substitute with old fashioned or dark brown sugar if you want a deeper molasses flavour. Avoid coconut sugar as it will alter the flavour profile. No brown sugar? Switch it for white sugar and add 1 tablespoon of vanilla bean paste to create a yummy vanilla traybake instead.
Baking Powder: Provides extra rise even with self-raising flour.

Wet Ingredients

Plant-Based Butter: Unsalted, room temperature. Can swap with a light oil or regular unsalted butter if not dairy-free.
Eggs: Large eggs add richness and bind the cake. For vegan versions, use 4 flax eggs or 100 grams apple sauce and 100 ml of plant-based yogurt.

For the Butterscotch Buttercream

This buttercream is wonderfully light with just the right amount of butterscotch flavour, thanks to the addition of brown sugar.

Showing the butterscotch buttercream ingredients.

Plant-Based Butter: Unsalted, room temperature. For better consistency, avoid ‘tub’ butter as they tend to contain more oils and water (to keep them spreadable).
Plant-Based Milk: Almond milk is ideal for creaminess, but any plant-based milk works. Use dairy milk if you are not vegan.
Icing Sugar and Light Brown Sugar: This combination creates the rich butterscotch flavour. Ensure the light brown sugar is lump-free.
Vanilla Bean Paste: Enhances flavour and colour. Vanilla extract is a suitable alternative.

Pro Tip: Warm brown sugar for 10–15 seconds in the microwave to remove lumps and create a smooth, silky buttercream.

How to Make Scrumptious Dairy Free Butterscotch Cake

Before you start, preheat your oven to 350°F (175°C) and prepare your baking pan. Grease and line a 13×9-inch baking pan with parchment paper to ensure easy removal.

Step 1: Make the Cake Batter

Using the all-in-one method, combine self-raising flour, light brown sugar, eggs, baking powder and plant-based butter.

Showing the dairy free butterscotch cake ingredients in a bowl prior to mixing.

Beat with a hand mixer until the mixture is light, fluffy, and well combined. You can also mix by hand or use a stand mixer, but don’t overmix – it only needs to be combined. The batter will develop a beautiful golden colour and smell irresistible.

Showing the dairy free butterscotch cake ingredients in a bowl after mixing.

Step 2: Bake the Cake

Pour the batter into the prepared pan, spreading evenly to the corners. Tap the pan gently on the counter to remove air bubbles. Bake in a preheated oven at 350°F (175°C) for 30 minutes, or until the cake is golden, risen, and starting to pull away from the sides of the pan.

Showing the dairy free butterscotch cake in the pan before baking.

Allow the cake to cool completely before removing it from the cake pan, then transfer to a serving plate or cake board before frosting.

Showing the butterscotch cake in the pan after baking.

Step 3: Make the Butterscotch Buttercream

Combine plant-based butter, plant-based milk, icing sugar, light brown sugar, and vanilla bean paste. Beat on medium speed until smooth and creamy.

Close up of butterscotch buttercream ingredients in a mixing bowl.

Spread generously over the cooled cake with an offset spatula. The buttercream is light, fluffy, and packed with butterscotch flavour – so good you’ll be tempted to eat it straight from the bowl!

Step 4: Serve & Enjoy

Cut the cake into 16 generous slices or 24 smaller slices for kids’ parties. Serve with a cup of tea or coffee for the perfect indulgence.

Slices of scrumptious dairy free butterscotch cake topped with vegan buttercream.

Storage & Freezing Instructions

This butterscotch cake is at its absolute best on the day it’s baked—soft, golden, and dangerously moreish. Honestly, it rarely lasts long in our house because everyone goes back for “just one more slice.” But if you do manage to save some, here’s how to store it properly:

Room Temperature: Store in an airtight container for 2–3 days.
Refrigerator: Spare cake and extra buttercream can be stored for up to 1 week. Allow the cake to come to room temperature before serving.
Freezing: Both cake and buttercream can be frozen separately for up to 3 months. Thaw overnight in the fridge before serving.

Tips for Baking Success

Before you dive in, here are a few simple but game-changing tips that will help your butterscotch cake bake up perfectly every single time – soft, fluffy, flavour-packed, and beautifully golden.

Always use room temperature butter and eggs for a lighter cake.
Weigh ingredients rather than using cups for accuracy.
Ensure brown sugar is lump-free for smooth buttercream.
Use parchment paper for easy cake removal.
Don’t overmix the batter—mix just until combined for a tender crumb.
Tap the pan before baking to release air bubbles.

Frequently Asked Questions

Here are a few quick answers that will help you troubleshoot, customize, and get the very best results from your dairy-free butterscotch cake:

What’s the difference between butterscotch and caramel?

Butterscotch is made with brown sugar and butter, giving a deeper, more complex, slightly earthy sweetness. Caramel uses white sugar and cream, which creates a lighter, sweeter flavour. This cake is all about the authentic butterscotch notes.

Can I make this cake fully vegan?

Yes! This recipe is naturally dairy-free, and you can make it fully vegan by using flax eggs or a combination of applesauce and plant-based yogurt instead of eggs. The cake will remain soft and moist, just like the original.

Can I make it gluten-free?

Absolutely. Replace self-raising flour with a gluten-free blend – check out my how-to guide for exact measurements to make your own GF self-raising (self-rising) flour.

Can I make this a layer cake?

Yes! Divide the batter evenly into two 8-inch cake pans and bake for slightly less time, checking for doneness with a toothpick. Then layer with the vegan butterscotch buttercream for a show-stopping dessert.

How long does this cake keep?

This cake is best enjoyed on the day it’s made, but if you have leftovers, it keeps 2–3 days at room temperature in an airtight container. Extra buttercream can be stored in the fridge for up to 1 week or frozen for up to 3 months. You can also freeze wrapped slices – allow them to defrost in the fridge before unwrapping.

Can I make this cake in advance?

Yes! Bake the cake layer and cool completely, then store in an airtight container at room temperature for a day. Frost just before serving for the freshest taste. You can also freeze the unfrosted cake or extra buttercream for later use.

Closing Thoughts and Related Recipes

This dairy free butterscotch cake is the perfect blend of nostalgia, flavour, and allergy-friendly baking. It’s soft, golden, and topped with a rich vegan buttercream that everyone can enjoy. Whether you’re making it for a party, a birthday, or a cozy weekend treat, it’s always a hit.

If you love this cake, check out more of my allergy-friendly cakes that are sure to impress:

Indulge without dairy and enjoy a slice (or two!) of pure comfort and flavour.

Ready to bake your own scrumptious dairy free butterscotch cake? Grab your ingredients, follow the step-by-step instructions, and treat yourself and your loved ones to this indulgent, allergy-friendly dessert. Don’t forget to share your creations with us on Instagram or tag @itsbakeangel – we love seeing your cakes!