how to make the best butterscotch chips

Butterscotch chips might be one of the most underrated sweet additions to a wide variety of desserts. If butterscotch morsels are not good quality, the chips might have a waxy mouth feel and a too-mild flavor, but when properly made, butterscotch can be a delicious addition to many cookie bar recipes. Gather quality ingredients and make your own homemade butterscotch chips to use in butterscotch cookies and many other desserts, such as melted-down to flavor vanilla pudding for a chocolate trifle. With some patience and a steady hand, you can keep large batches of butterscotch morsels on hand for all of your baking needs – or to satisfy that sweet tooth, in moderation.

Butterscotch Ingredients

There are two ways to make your own butterscotch morsels. The first is to bake a mixture in the oven, while the simpler method is to mix up the ingredients and pipe out butterscotch chips. The no-bake method is faster and involves fewer ingredients than the baking method. Regardless of which method you choose or ingredients that will be required, the butterscotch flavor is characteristic of a butter and molasses mix.

If you're following the no-bake recipe, simply use coconut oil, butter, molasses, vanilla extract, arrowroot starch and powdered sugar. The method that involves cooking the mixture in the oven calls for the same ingredients, plus extra liquid, namely milk and water, as well as pure cane sugar. Baking this mixture helps to solidify and harden the loose batter or candy mixture.

To cook the mixture to make butterscotch chips, the ingredients must be combined, melted down and boiled. This produces a smooth and even candy texture. Once boiling, the hot sugar is poured into a baking pan and allowed to cool. The hardened candy is cut into strips, then into square chips that are stored in the fridge.

How to Make No-Bake Butterscotch Chips

Total Time: 3 hours 30 minutes | Prep Time: 30 minutes | Serves: 1 cup chips


  • 1/4 cup coconut oil, melted
  • 1 1/2 tablespoons molasses
  • 1 tablespoon butter, softened
  • 1/2 teaspoon vanilla extract
  • 1/2 cup powdered sugar, sifted
  • 2 teaspoons arrowroot starch


  1. Line one baking sheet with wax paper and set aside.

  2. In a medium mixing bowl, use a spoon to combine the melted coconut oil, softened butter, molasses and vanilla extract.

  3. In a separate smaller bowl, sift together the powdered sugar and arrowroot starch.

  4. Pour the dry ingredients into the bowl with the wet ingredients and stir together to combine well into a thick ball of cookie dough-like batter.

  5. Spoon the mixture into a heavy-duty piping bag fitted with a plain round tip.

  6. Pipe small chips onto the wax paper-lined baking sheet.

  7. Place the baking sheet in the freezer for at least 1 1/2 to 2 hours, or until the butterscotch chips have hardened.

  8. Pour the butterscotch chips into a self-sealing container and store in the fridge for up to two months.

This recipe is easy to double or triple so you can make as many butterscotch chips as you need to have on hand.


While this recipe for no-bake chips is easy and tasty, try the baked recipe for butterscotch morsels with a smoother texture.