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Stack of caramel butter cookies on Christmas fabric.

Caramel Frosted Butter Cookie Recipe

  • Author: Mindee
  • Prep Time: 20 minutes
  • Cook Time: 8 minutes (per batch)
  • Total Time: 28 minutes
  • Yield: 85-90 Small Cookies 1x
  • Category: Cookie
  • Method: Baking
  • Cuisine: American


Warning!!! These caramel cookies are highly addictive!  One bite will have you hooked!  The melt in your mouth caramel frosting made with sweetened condensed milk tops a caramel butter cookie!  They're the perfect combination!


Units Scale

Caramel Frosting:

  • 3/4 cup Butter
  • 1 1/2 cups Brown Sugar
  • 3/4 cup Sweetened Condensed Milk
  • 1 tsp Vanilla
  • 1 1/4 cups Powdered Sugar (sifted)

Caramel Butter Cookie Dough

  • 1 1/2 cups Butter (room temperature)
  • 1 cup Brown Sugar
  • 1/2 cup White Sugar
  • 2 Egg Yolks
  • 2 tsp Vanilla
  • 1 tsp Salt
  • 3 cup Flour



  1.  Prepare the frosting so it will be warm to frost the cookies but not so hot it runs off.
  2.  First sift the powdered sugar well and set it aside.
  3.  In a small non stick pot melt the butter.
  4.  Whisk in the brown sugar and bring to a boil. Boil for 2 minutes.
  5. Carefully whisk in the vanilla and sweetened condensed milk.
  6. In a mixing bowl, cream the butter and the sugars. Mix in the egg yolks, vanilla and salt. Stir in the flour, mixing well.
  7. Whisk in the sifted powdered sugar a 1/4 cup at a time. It is important that the powdered sugar be sifted to avoid lumps.
  8. Remove from the hotter heat but keep the frosting warm by either putting it in a non stick pot on the stovetop over very low heat in between frosting batches or put it in a chocolate melting pot set on low.
  9. Make the cookies.  
  10. Preheat the oven to 375 degrees. Spray baking sheets with non stick cooking spray or line them with parchment paper.
  11. In a mixing bowl, cream the butter and the sugars.
  12. Add the egg yolks and the vanilla.  Mix well.
  13. Add the salt and the flour.  Mix well.
  14. Scoop out the dough by 1/2 tablespoonfuls and roll into balls. Each ball should be the size of a gumball.
  15. Place on prepared baking sheets. I was able to cook 20 cookies per pan.
  16. Flatten each cookie with a fork in a criss cross pattern.
  17. Bake at 375 degrees for 8 minutes. These cookies won't brown until they are overdone, so don't wait for them to brown or they will be crispy.
  18. Cool the cookies on a cooling rack.
  19. While the cookies are still a little warm but not hot, frost them with the warm caramel frosting.
  20. Allow the frosting to cool and set.
  21. Store in an airtight container with wax paper separating the layers of cookies.


  • Just in case you find that your frosting is a little grainy or lumpy....First, the good news is that the grainy pieces of sugar will still soften as the cookies sit so don't panic. Two things can cause the caramel frosting to be lumpy or grainy.  One, you have to sift the powdered sugar as you add it so that it properly melts into the caramel.  Two, you need to add the powdered sugar right after adding the sweetened condensed milk and vanilla while it is still hot.  It the caramel is not hot enough then the powdered sugar doesn't melt as added.

Keywords: caramel cookies, butter cookies, Christmas cookies