This Southern Caramel Cake with Condensed Milk is a three-layer made from scratch cake topped with homemade caramel icing!
If you love rich, buttery cakes with a deep caramel flavor, this Southern Caramel Cake with Condensed Milk is your dream dessert. Imagine three layers of moist cake, each brushed with caramel made from slow-cooked condensed milk, then slathered top to bottom in a sticky, homemade caramel icing. It's Southern comfort at its finest. In this post, I'll show you how to bake it from scratch, how to make the easiest caramel and share my best tips for keeping it moist.
Video Tutorial
Why You'll Love This Southern Caramel Cake
- Great for a crowd - big, bold, Southern dessert that's a centerpiece.
- Three layers of flavor - soft, tender cake paired with a rich, creamy caramel.
- Condensed-milk caramel - you just need condensed milk + slow cooker (or Instant Pot) for that molten caramel magic.
- Made from scratch - no cake mixes used for this beauty.
Tips for the Best Results
- Use room temperature ingredients (butter, eggs, sour cream) to get smooth batter and even baking.
- Don't overmix after adding flour-overworking can make cake dense.
- Prepare pans well (greased + floured or baking spray + flour) to avoid sticking.
- Cool layers completely before icing so the caramel doesn't run off.
- Open condensed milk cans only when they're safe to handle to avoid burns.

Serving Suggestions & Variations
- Serve slices with whipped cream or vanilla ice cream.
- Garnish with toasted pecans for crunch.
- Add a touch of bourbon or a pinch of sea salt in the caramel for a different flavor.
Storage & Freezing
- Store in an airtight container at room temperature for up to 5 days (the icing is sticky).
- Refrigerate if your kitchen is warm; bring to room temp before serving.
- Layers can be baked ahead; bake and wrap, then assemble later.
- Freeze unfrosted layers or individual slices (wrapped tightly), up to 3 months.

Southern Caramel Cake with Condensed Milk i
Ingredients
- For the cake - you will need:Â
- 3 c cake flour-sifted
- 2 ½ c granulated sugar
- 1 c unsalted butter (2 sticks) - room temperatureÂ
- 1 c sour cream- room temperature
- 5 large eggs- room temperature
- â…“ c vegetable oil
- 1 teaspoon baking powder
- 2 tbsps vanilla extract
- ½ teaspoon salt
- For the caramel you will need:
- 3-4 cans condensed milkÂ
- water
Instructions
- Steps to make the caramel:
- First, remove the paper from the cans of condensed milk.
- Place the cans in your Instant Pot or slow cooker.
- Add water to the Instant Pot or slow cooker filling it up to cover the cans.
- Place the top on your device and set it for 8 hours. (If using the Instant Pot, choose the slow cook setting and set the time to eight hours.)
- After 8 hours, remove the cans from the device, dry them with a towel and allow them to cool.
- Once they are warm to the touch, they can be opened.
- Steps to make the cake:
- Preheat your oven to 350 degrees.
- Using a hand or stand mixer, cream the butter, oil, and sugar together until light and fluffy (approximately 5 minutes).
- Then mix in the vanilla.
- Add the eggs to the bowl one at a time mixing until combined after each addition.
- Add the baking powder and salt to the cake flour and whisk it together.Â
- Add the flour mixture to the bowl alternating with the sour cream beginning and ending with flour.
- Spray three 9-inch round cake pans with baking spray and pour the cake batter into the cake pans evenly.
- Bake in preheated oven for 20-25 minutes or until fully baked.
- The cake is done once an inserted toothpick comes out clean. Allow the cakes to cool in the pans for 10 minutes before inverting.Â
- Then remove the cakes from the pans and allow them to continue to cool completely.
- Once the cakes have cooled, layer the cake placing caramel in between each layer and place the caramel over the top and sides of the cake spreading the caramel as evenly as possible.
- Serve and enjoy!
Video
Nutrition
Frequently Asked Questions
Is condensed milk caramel the same as regular caramel icing?
Not exactly-it's sweeter and creamier. Regular caramel is made from sugar and butter mostly; condensed milk caramel is more luscious and less likely to burn.
Can I use fewer cans of condensed milk?
Of course! If you want a lighter caramel flavor, you can reduce the amount of caramel used. Use as much as you like.
Can this cake be made ahead of time?
Absolutely! You can bake the layers 1-2 days ahead of time, store them wrapped, and add caramel icing right before serving to keep everything fresh. The caramel icing is best applied warm.
Why does cake sink in the middle?
Usually because oven temperature is too low or the oven was opened too early.

More Caramel Recipes
Made with light brown sugar and a delicious brown sugar glaze - Brown Sugar Pound Cake
Mile High Caramel Pound Cake - the perfect balance between decadence and simplicity.






Leatrice Hamilton says
Is 1 teaspoon of baking powder correct?
For a 3 layer cake with 3 cups of cake flour or all purpose flour you need 3 teaspoons of baking powder.
Ashley Frederick says
Yes that's correct.
Shakera Tolliver says
Taste amazing…Thanks!
Ashley Frederick says
Great! I'm glad you loved it!
Mary Miller says
The Recipe was Spot on!!
Ashley Frederick says
Thank you! Glad you enjoyed it love.
Mary Miller says
Delicious
Ashley Frederick says
Thank you
Corwanna Mitchell says
Why does it cost so many condense milk
Ashley Frederick says
It's a large cake love. Use as much or as less as you like. You may get away with just using 2 or 3 cans.
Cynthia says
Very nice I will try and come back
Ashley Frederick says
Thank you! I hope you love it!
Nancy G says
In the Deep South, it’s an honor to have a homemade caramel cake brought to your funeral! This recipe is a winner!!
Whip it like Butter says
It's definitely a classic Nancy! Thank you!