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 can imagine so many delicious uses for your butterscotch sauce!! For right now, I am imagining it being swirled all over my favorite french vanilla ice cream! YUM!
Yes, a thousand times yes, to this sauce on ice cream!!
I am a big fan of butterscotch and can never have enough on my ice cream. You make it looks very easy to make at home and I am tempted to make some of my own. Love you clicks and that makes it even more tempting!
Thanks, Sandhya!
LOVE butterscotch. I have never attempted making my own sauce. I should…since it looks easy and I know it would be way better than bought. Homemade wins every time.
It is pretty easy as long as you’re patient and don’t cook it too hot. Hope you try it.
I’ve never thought of making my own butterscotch sauce before. I totally dig that there is schnapps in there.
Thanks, Erin!
I completely agree! Salted caramel is great, but butterscotch is something entirely different and special. I love the addition of the schnapps in here, too.
Thanks, Sarah.