Butterscotch Sauce
Silky smooth & buttery, Butterscotch Sauce has a special and specific flavor. Sure, I like salted caramel as much as the next guy, but let’s try Butterscotch Sauce for a change.

Table of contents
How is Butterscotch different than caramel?
Caramel sauce is made by melting and caramelizing white sugar, then adding a liquid to that caramelized sugar to turn it into a sauce.
Butterscotch sauce starts by melting brown sugar and butter together and then adding a liquid. Brown sugar has molasses in it, which is not the same thing as caramel. So butterscotch has notes of butter, molasses, vanilla and salt.
Ingredients

Ingredient Notes
- Brown Sugar – I like the deep molasses flavor from dark brown sugar, but you can use light brown sugar if that’s what you have on hand.
- Liquor – I developed this recipe using Butterscotch Schnapps for flavor. Honestly, because there was a bottle in the house that no-one was drinking. You can use another liquor like bourbon or rum, or you can replace the liquor with cream to keep it alcohol-free.
- Salt – Don’t leave the salt out. The characteristic butterscotch flavor is a combination of brown sugar, butter, vanilla and salt. The recipe was developed using Morten Kosher Salt. If you use table salt use 1/4 teaspoon.
Process Photos
See the recipe card for detailed measurements and instructions.

- Step 1: When you add the brown sugar to the melted butter, the mixture will look like wet sand.
- Cook over medium-low heat for 5 minutes and stir occasionally. Don’t cook too fast or your sugar won’t melt properly.

- The butter and sugar mixture will slowly liquify.

- Whisk the cream into the sugar & butter mixture. Keep your face clear of the steam that will form over the pot. Whisk in the optional liquor.
- Cook over medium low heat for 10 minutes, whisking occasionally.

- The sauce will bubble up while cooking.

- The sauce will become more viscous as it cooks.
- The final sauce should be silky smooth and not at all gritty.
Storage
Butterscotch Sauce will keep in the refrigerator for several weeks. I like to store it in a canning jar or glass bottle. Bring to room temperature before serving. Butterscotch sauce can be frozen for up to 3 months.
You might also enjoy Rumtopf, Mexican Cajeta or Hot Fudge Sauce on your ice cream.
More Butterscotch Recipes

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Butterscotch Sauce
Ingredients
- 2 oz unsalted butter
- 8 oz dark brown sugar (1 cup)
- 4 oz heavy cream (1/2 cup)
- 2 oz butterscotch schnapps (1/4 cup (see note))
- 2 teaspoons real vanilla extract
- 1/2 teaspoon kosher salt (not table salt (see note))
Instructions
- Melt 2 oz unsalted butter over medium low heat (see note). Add 8 oz dark brown sugar and stir until the sugar looks like wet sand. Cook on medium low, stirring occasionally, for about 5 minutes. The mixture will begin to liquify.
- Whisk in 4 oz heavy cream, then whisk in the 2 oz butterscotch schnapps. BE CAREFUL, the mixture will bubble up and steam when the liquids are added. Keep your face away from the pot.
- Cook over medium low heat for for about 10 minutes, whisking occasionally, until the butterscotch becomes viscous, very smooth and silky. Remove the pot from the heat and whisk in 2 teaspoons real vanilla extract and 1/2 teaspoon kosher salt.
- Pour into a heat proof container to cool. I like to use canning jars to store the butterscotch sauce.
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Equipment
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I love caramel sauce but this butterscotch looks amazing as good as caramel must do following yoru tips soon!
I love caramel too. But this is easier to make than caramel and has a different flavor. Hope you try it.
I haven’t had butterscotch in a while, and this reminds me of how much I enjoy it! Loving your recipe for butterscotch sauce. This would go so well with so many things!
Yep, it goes well with so many desserts. It also goes well with a spoon!
I love butterscotch – in fact more than caramel..!! So handy to have around. I made butterscotch cupcakes last week and they were such a treat. So much flavor in this sauce.
I know, it’s sooo good.
I haven’t had butterscotch in ages but I used to really love it and this just reminded me how much. I could just dip my spoon in there and eat it.
Thanks, Stephanie. I have been dipping a spoon right into the jar. It’s addictive!
Butterscotch does not get enough love. Every time I have it I am reminded how good it is and how well it pairs in desserts. To make your own means you can have a whole lot of it. Great idea!
I agree Peter. It does pair really well with desserts, but I will admit to dipping a spoon right into the jar…