Caramel Slice

This easy Caramel Slice recipe combines three wonderful layers: a buttery biscuit base, a rich baked caramel in the middle and a smooth milk chocolate topping.

The recipe has been tweaked to perfection under the guidance of my Mum, who was a pastry cook in country bakeries for many years.

Old school Caramel Slice

The best Caramel Slice is, of course, the old school style slice with a smooth caramel filling between biscuit and chocolate layers.

The three layers create a completely decadent sweet treat that is also known as caramel shortbread, millionaire’s shortbread and Wellington squares.

This recipe is based on one I found in Mum’s old cookbook which has been handwritten by either myself or my sister but has since been updated by my Mum over the years as she trialled different versions of the recipe in bakeries.

The original recipe is below, but please keep scrolling for the updated and perfected recipe in the recipe card at the end of this post.

Caramel Slice ingredients

To make this slice, you’ll need:

• brown sugar
• desiccated coconut
• plain flour (all-purpose flour)
• butter
• condensed milk
• golden syrup
• milk chocolate
• vegetable oil (optional).

How to cook Caramel Slice

Start by preheating your oven to 180 degrees celsius (fan-forced).

Next, grease a slice tin (27 x 17cm) well and line base with baking paper, allowing the baking paper to overhang each side (to assist with removal once it’s ready to slice).

Gather your ingredients and measure out the quantities (see recipe card below for quantities).

Making the biscuit base

A key part of a great caramel slice is a firm, buttery biscuit base.

Nobody likes a soggy or crumbling disaster when cutting up or eating slice!

This recipe creates a fabulous base in a few simple steps.

Combine the sugar, coconut and flour and then mix in melted butter.

Press the mixture into a well-greased slice tin (approx 28 x 18cm) and even out this layer using your fingertips and the back of a spoon.

Place into the oven and bake for 15 minutes.

The smooth caramel layer

This slice uses condensed milk along with butter and golden syrup to give the caramel layer an incredible smoothness.

The cooking and baking creates the right firmness for a successful slice. You want the caramel to be soft and velvety but hold together well to keep its shape.

If you don’t have any golden syrup on hand when making the caramel, you can use corn syrup or maple syrup.

So, while the base is cooking, it’s time to make the caramel layer. Mix the condensed milk, butter and golden syrup in a saucepan and place on stove top over medium heat.

Stir using a whisk until the mixture turns a more golden colour and starts to form bubbles. Cook for 5 minutes once the mixture starts bubbling, turning down the heat if necessary to maintain a steady simmer.

Once the base is cooked, remove the tray from the oven and pour the caramel mixture over the base.

Use a spatula to spread the mixture evenly over the base. Return the tray to the oven and cook for another 10 minutes.

Remove from oven and allow to cool.

The top layer: Chocolate!

This slice just gets better and better!

The topping should complement the other layers, and this recipe uses a generous amount of good quality milk chocolate. 

Once the caramel slice biscuit base and caramel filling layer have cooled to room temperature, melt the chocolate (and optional oil which will make it easier to cut) using 20 second bursts in the microwave.

Pour the melted chocolate over the caramel layer to create the top chocolate layer.

Angle the slice tray to make sure the chocolate moves into all corners of the tray and is evenly distributed over the top of the slice.

Place the slice in the fridge to set.

Once set, remove from the fridge and allow to stand for at least 15 minutes before removing from slice tin and cutting into squares with a sharp knife.

Using the optional oil in the chocolate will also make the slice easier to cut without cracking.

Your Caramel Slice questions answered

Q. Is it hard to make Caramel Slice?

Although there is some baking involved, the recipe is still a simple one.

The baking guarantees a gorgeous caramel layer that holds together nicely when you cut the slice into squares – and when you eat it!

Q. Can you freeze Caramel Slice?

You can freeze the slice for up to six months. Wrap the slice in plastic wrap well before freezing and allow to thaw out in the fridge overnight when you’re ready to enjoy.

Q. How long will Caramel Slice last in the fridge?

Store the slice in an airtight container in the fridge for up to 5 days. You can enjoy it cold or allow it to reach room temperature before serving.

Love your slices?

Find more wonderful slices and old-fashioned Aussie favourites in the Cooking with Nana Ling recipe collection, including Peanut Caramel Slice, Peppermint Slice and Jelly Slice.

Love caramel?

You might also like Creme Caramel or Russian Caramels.