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 never tried butterscotch sauce before. It sounds amazing. Love the consistency of this sauce. Looks so buttery, dense and delicious. Yum!
Thanks, Natalie. The sauce has a really luxurious texture.
Yum. I definitely would be licking the spoon! I want to drizzle this over some brownies with a scoop of ice cream!
I like the way you think, Amy!
This sounds like such a decadent treat, yum! Oh and I am so with you with the salted caramel thing…a bit over it for now 🙂
Thanks, Donna.
OMG, I LOOOOVE Butterscoth flavor and the sauce is my fav…more than caramel sauce! I’ve grown up eating it in India and your recipe is spot on. I’ve never tried making it at home but your recipe is so easy to follow that I’d make it soon.
Thanks, Molly. Is butterscotch popular in India?
Everyone gives all the love to chocolate. Why is that?? We love the taste of butterscotch. Yummy, buttery, creamy! Can’t beat it. In fact, Hubby’s favorite pie is butterscotch cream pie. I think I’ll make something and pour this delicious sauce all over it.
I would hate to have to choose between chocolate or butterscotch. It would be like choosing your favorite child. I’m happy to be in a world with both! I’ve been seeing recipes for butterscotch pie. I’ll have to give that a try soon. I’m working on some other butterscotch recipes for future posts.