This caramel shortbread recipe is a nod to my childhood afternoons, when the kitchen smelled of melting butter and rich caramel, and the crunch of the shortbread was just right. It’s one of those treats that feels like a secret shared across generations, simple but deeply satisfying. Making it from scratch somehow makes the whole house smell like comfort and nostalgia, even on busy days.

What I love about this recipe is how forgiving it is—yet how impressive it looks when you cut into that glossy caramel layer, revealing the crisp, buttery base beneath. It’s a perfect project for a lazy weekend or a moment when you need a little sweet escape, with the bonus of knowing exactly what’s in it. Plus, it’s just one of those cookies that everyone reaches for, no matter how many you’ve made.

This recipe is my secret weapon for nostalgic afternoons—those times when a sticky, buttery caramel and crisp shortbread bring back childhood memories of family gatherings and simple joys, but with a grown-up twist of rich, smoky caramel that feels luxurious and indulgent.

The story behind this recipe

This recipe actually came about during a messy weekend in my kitchen, when I was trying to recreate a childhood favorite that my grandma used to make. I remember the smell of caramel bubbling away, sticky and sweet, as I tried to get it just right. It’s funny how a simple combination of ingredients can stir up so much nostalgia and messy joy.
One afternoon, I was experimenting with different textures—more buttery shortbread, richer caramel—until I finally hit that perfect balance. It’s become a little ritual now, making this whenever I need a moment of comfort or a reminder of slow Sunday afternoons with family. It’s a bit rough around the edges, but that’s part of the charm.
heading: ‘The story behind this recipe’

Key Ingredients Breakdown

Unsalted butter: I always go for a high-quality, creamy butter—it melts smoothly and adds a rich, nutty aroma that fills the kitchen. Feel free to tweak with salted butter if you forget, but reduce salt in the shortbread.
Golden caster sugar: I love how this sugar dissolves quickly, giving the caramel a silky texture and a bright, golden hue. If you only have regular sugar, just give it a little extra whisking until smooth.
Sweetened condensed milk: This is the magic that creates that oozy, luscious caramel. Use a good brand for depth of flavor, but if you’re in a pinch, evaporated milk sweetened with sugar works—just cook it down a bit longer.
Flour: I stick with plain all-purpose flour—it’s reliable and gives that tender, crumbly shortbread. For a slightly richer taste, swap in a touch of cornstarch, but keep the flour amount the same.
Dark chocolate (optional): I like a bittersweet note on top; it contrasts beautifully with the caramel’s sweetness. A good quality bar melts smoothly, but a sprinkle of chopped chocolate works if you’re feeling casual.
Sea salt: I always sprinkle a little flaky sea salt on top before baking—those crystals catch the light and elevate the caramel’s richness. No salt? Just a pinch of regular table salt will do.
Vanilla extract: I use a real vanilla bean paste for deep aroma, but pure extract works fine. It brightens the caramel and shortbread with a subtle floral note—don’t skip it.

Spotlight on Key Ingredients

Sweetened condensed milk:

I love how it transforms into a luscious, oozy caramel with just gentle simmering. It’s the backbone of that rich, buttery flavor that makes every bite feel indulgent.
Dark chocolate (optional): When melted on top, it adds a bittersweet contrast. It cracks slightly when you bite, and the aroma of cocoa fills the room, balancing the sweetness.

Sea salt:

Unsalted butter: I always pick a creamy, high-quality butter—its nutty aroma deepens during baking, and it melts smoothly into the shortbread, adding tender richness.
Sprinkled on top before baking, those flaky crystals catch the light and create a burst of salty contrast that elevates the caramel’s richness. Don’t skip it.

Notes for ingredient swaps

Dairy-Free: Swap butter for coconut oil or vegan butter. Expect a slightly different richness and a coconut aroma.
Gluten-Free: Use almond flour or gluten-free all-purpose flour. The texture will be crumblier but still delicious.
Sugar Variations: Replace golden caster sugar with coconut sugar for a caramel-like flavor, though it may darken more.
Condensed Milk: Try evaporated milk plus a tablespoon of butter and extra sugar, but the caramel might be less oozy.
Chocolate Topping: Use white or milk chocolate if dark isn’t your thing; it melts just as smoothly but alters the flavor profile.
Salt: For a different twist, sprinkle smoked sea salt on top before baking for a smoky contrast.
Flavor Boost: Add a pinch of cinnamon or sea salt to the shortbread dough for extra depth and warmth.

Equipment & Tools

20cm (8-inch) square baking tin: To shape and bake the shortbread and caramel layers.
Parchment paper: To prevent sticking and make removal easier.
Mixing bowls: To prepare the shortbread dough and caramel mixture.
Silicone spatula: For stirring and spreading ingredients smoothly.
Hand mixer (optional): To cream the butter and sugar more easily.
Saucepan: To cook the caramel mixture evenly.
Sharp knife: To cut the cooled, set caramel into neat squares.

Step-by-step guide to caramel shortbread

Preheat your oven to 160°C (320°F). Grease a 20cm (8-inch) square baking tin or line it with parchment paper. Gather your ingredients and tools, and get ready to build layers of caramel and shortbread.
For the shortbread base, cream 225g (1 cup) unsalted butter and 100g (1/2 cup) golden caster sugar in a bowl until light and fluffy, about 3-4 minutes. Use a hand mixer or a sturdy spoon. Add 250g (2 cups) plain flour and 50g (1/3 cup) rice flour, mix gently until just combined and the dough comes together. Press this evenly into the prepared tin, smoothing the surface with the back of a spoon or your fingers. Bake for 20-25 minutes until golden around the edges. It should smell buttery and baked through.
While the base cools slightly, make the caramel. In a heavy-bottomed saucepan, melt 150g (2/3 cup) sweetened condensed milk, 50g (1/4 cup) unsalted butter, and 125g (2/3 cup) golden caster sugar over medium heat. Stir constantly with a silicone spatula, scraping the sides and bottom. Cook for about 8-10 minutes until the mixture turns a deep amber and thickens slightly, smelling rich and caramel-y. If it starts to bubble too fiercely, lower the heat. Remove from heat and stir in a teaspoon of vanilla extract and a pinch of sea salt.
Pour the hot caramel over the shortbread base, spreading evenly. Return to the oven and bake for an additional 12-15 minutes until the caramel is bubbling at the edges and slightly thickened. The caramel should shimmer and have a gently crackling sound when you tap the surface lightly. If it’s too runny after cooling, give it more time to thicken.
Once baked, let the caramel shortbread cool in the tin for at least 1 hour. Then, transfer to the fridge for another 2 hours or until completely set. For a neater cut, use a sharp knife warmed under hot water, then dried, to slice cleanly through the firm caramel and shortbread. Finish with a sprinkle of flaky sea salt or chopped dark chocolate if desired.
Serve at room temperature or slightly chilled. The caramel will be gooey and rich, contrasting with the crumbly, buttery shortbread. The texture should be firm but not hard, with a glossy caramel top and a tender base. Enjoy the layered melt-in-your-mouth experience.

Let the caramel shortbread cool completely in the tin, then chill in the fridge for at least 2 hours. Once set, slice into squares with a warm knife, and sprinkle with sea salt or chocolate if desired. Serve at room temperature for best texture and flavor.

How to Know It’s Done

Shortbread edges are golden and firm when baked.
Caramel is deep amber, bubbling gently, with a rich, toasty aroma.
The cooled caramel is set and glossy, not sticky or runny.