This Caramel Cream Cheese Frosting comes together in about 30 minutes and adds a luscious, creamy touch to any cake. The frosting starts with a rich caramel gently cooked until it’s a gorgeous amber color, then blended with smooth cream cheese and butter. The result is a silky, not-too-sweet frosting perfect for topping your favorite desserts. It’s a Southern comfort classic with a bit of a gourmet twist.

Decadent Caramel Cream Cheese Frosting Recipe
There’s nothing quite like a homemade frosting for cakes and cupcakes and this rich creamy caramel cream cheese frosting will turn your favorite cake in to a show stopper cake.
This frosting starts with homemade caramel which is blended with creamy cream cheese and butter for a luxurious finish. The caramel adds a deep richness perfectly balanced by the tangy cream cheese.
This frosting is ideal for a variety of cakes, whether you’re dressing up a simple apple sheet cake, adding a sweet layer to a decadent banana cake, or icing the tops of soft pumpkin cookies. It’s versatile enough to complement a range of flavors but shines brightest on cakes where its caramel notes can truly stand out.
While it might take a bit of effort to make the caramel, the result is so worth it. The frosting has a smooth, creamy texture that spreads beautifully and holds its shape well, making it perfect for decorating cakes or cupcakes. Plus, it’s not too sweet—just the right balance of caramel’s richness and cream cheese’s tang.
Some people are intimidated by making caramel. But seriously what’s the worst that can happen. If the caramel cooks too long and burns, all you are out is a half a cup of powdered sugar. (speaking from experience here) Just start again and remove it a little earlier. Once you’ve made a caramel and cream cheese frosting, it’s hard to choose any other type.
If you’re looking for a caramel frosting without cream cheese, try a creamy buttercream frosting, it’s just as amazing.
What You Need to Make This Cream Cheese Frosting

It’s Easier Than You Think
Step One: Make the Caramel





Step Two: Prepare the Frosting Base

Step Three: Mix in Caramel

Step Four: Chill
Refrigerate the frosting until it’s spreadable if it’s too soft to spread. This will help it firm up to the right consistency. It will need to be a little firm if you are using a piping bag to decorate.
Tips for Success
- Use room temperature butter, cream cheese, and heavy cream so you don’t get a chunky frosting.
- Let the caramel cool to room temperature so it doesn’t melt the butter and cream cheese.
Don’t Forget!
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Ingredients
- 4 cups powdered sugar 1lb, divided
- ½ cup plus 1 tablespoon heavy cream
- 1 teaspoon vanilla
- ¼ teaspoon salt
- 8 ounces cream cheese room temp
- ¼ cup butter room temp
Instructions
- Add ½ cup of the powdered sugar to a light colored saucepan and heat over medium heat without stirring until the sugar dissolves and have a tan liquid on the bottom of the pan.. You can swirl it occasionally.
- Continue cooking, about a minute, stirring to make sure the sugar has dissolved until it is a medium amber color. Don’t let it get too dark or it will taste burnt.
- Add ½ cup cream, vanilla and salt, it will foam up. Whisk until the caramel has dissolved and it is smooth. Stir in the remaining 1 tablespoon cream. Pour into a glass bowl and allow it to cool. It will not be thick. You can place it in the refrigerator or freezer, you want it to be room temperature.
- Once the caramel has cooled, add cream cheese and butter to a stand mixer and beat until creamy. Gradually add the powdered sugar and beat until smooth and creamy. Add the caramel and beat until combined.
Video
Notes
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- This will make enough to frost a 2 layer cake, a 9 x 13 sheet cake or 12-16 cupcakes.
- Use room temperature butter, cream cheese, and heavy cream so you don’t get a chunky frosting.
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- Let the caramel cool to room temperature so it doesn’t melt the butter and cream cheese.

Can I use half and half instead of the heavy cream? How will that affect the results?
You can use half-and-half and won’t hardly know the difference. It might not be quite as rich but it will still work and be delicious.