homemade butterscotch chips


homemade butterscotch chips

I have always had an obsession with butterscotch flavor…  not necessarily butterscotch candies, just butterscotch flavor.  It’s like caramel but with more depth.  It’s like brown sugar but with more sophistication.  So it seems like a given that I would love butterscotch chips, right?


homemade butterscotch chips

Factory-made butterscotch chips are probably one of the worst things in the grocery store baking aisle.  They are packed with sugar, hydrogenated oils (trans fat!) and hormone-injected milk.  Yuummm.  NOT.

So I made my own Healthy Homemade Butterscotch Chips — low in sugar, PHO-free and sans artificial food colorings!

homemade butterscotch chips

This first version is for no-bake treats only (they will melt in high-heat applications…  trust me, I tried) like an addition to krispy treats, protein bars and dessert oatmeal!

Healthy Homemade Butterscotch Chips [no-bake version]

Yield: ~1 cup



  1. Line a cookie sheet with two sheets of wax paper.
  2. In a medium-sized microwave-safe bowl, microwave the coconut oil at 20-second intervals, stirring between each one, until melted.
  3. Stir in the molasses and butter extract.
  4. In a small bowl, stir together the erythritol and arrowroot and add to the wet ingredients 1-2 tbs at a time.
  5. Place mixture (should look like a ball of fudge) into a sturdy/heavy-duty piping bag (do not use a makeshift sandwich bag for this) and pipe onto the wax paper. It will take a while, just FYI. And if you are not used to piping (like me), your hands will hurt after a while. I took and break and came back to pipe the rest :)
  6. Refrigerate the chips for 2+ hours, or until firm. Place into a sealable jar and keep refrigerated until needed for snacking... I mean baking.


These chips are best for no-bake treats (like an addition to protein bars or a topping for oatmeal. When these chips are baked they turn into tiny pockets of butterscotch caramel goo... it's actually really tasty but not very pretty. Just being honest!

This recipe is: low sugar, gluten free, vegan!


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Homemade Butterscotch Chips

This second version is suitable for baking since it holds up to heat and doesn’t melt…  into pockets of caramel…  like the first version…  ehem (don’t get me wrong, they were delicious caramelly gooey spots but they weren’t very pretty).  These Healthy Homemade Butterscotch Chips are amazing!

Homemade Butterscotch Chips [the "bake-able" version]

Yield: 3.5 cups



  1. Spray a 9″ brownie pan with cooking spray and line with parchment paper both ways.
  2. In a microwave-safe bowl, microwave the coconut milk, shortening and salt at 30-second intervals, stirring between each one, until shortening has completely melted.
  3. In a medium-sized deep pot, add the molasses and water. Stir in the erythritol and sucanat. Use a rubber spatula to scrape down the sides of the pot so there are no sugar crystals above the mixture. Add a candy thermometer to the pot.
  4. Place pot over medium-medium/high heat. Let it come to a boil without stirring. At 250 degrees Fahrenheit, turn off the heat and whisk in the coconut milk/shortening mixture. Stop whisking once all is added.
  5. Return the pot to medium-medium/high heat and heat to 250 degrees Fahrenheit, again, without stirring.
  6. Remove from heat and whisk in the vanilla extract. Pour into the prepared pan and let sit for 6 hours or overnight.
  7. Refrigerate for 30 minutes before slicing. Slice the butterscotch square with a sharp knife or pizza cutter (it will be a little sticky). You can either slice the strips you’ve made into chips with a knife or break it into pieces by hand (I started with the knife and moved on to use my fingers). Put the chips into a bowl and store covered in the refrigerator until you need to use it.


This recipe is: low sugar, gluten free, vegan!


Homemade Butterscotch Chips

In the first batch of homemade butterscotch chips I used 1/4 cup of non-hydrogenated vegetable shortening instead of the coconut oil.  They were prettier but didn’t firm up at all and melted completely into the butterscotch blondies I made  :(

homemade butterscotch chips
homemade butterscotch chips – first trial (fail)

Nestle butterscotch chips are so bad for you that they try to hide their ingredients, I couldn’t find them anywhere on the website!  If the company is that ashamed, I think that says something…  but I found the list on a few other websites:

Sugar, Partially Hydrogenated Palm Kernel Oil, Coconut Oil, Skim Milk, Whey, Natural and Artificial Flavors (includes barley), Soy Lecithin, Salt, Artificial Colors (Yellow 5, Yellow 6, Blue 2)

Not one healthy ingredient.  They even got an “F” on FoodFacts.com  (and Hersheys butterscotch chips aren’t any better).  So make these homemade butterscotch chips and save your body from all the harsh chemicals, flavorings and dyes in the storebought versions…  you will also be rewarded with butterscotch chips that actually taste GOOD!

Labels: 5-Ingredients-or-Less, Butterscotch, Coconut-Milk, Coconut-Oil, DIY, Erythritol, Gluten-Free, Low-Sugar, Molasses, No-Bake, Sucanat, Vegan

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Comments (22)

  1. Stacy | Wicked Good Kitchen: April 22, 2013

    Girl, you are a genius! These Homemade “Bake-able” Butterscotch Chips are amazing! Thank you for sharing, Jessica. xo

  2. Yes! I love that you posted this. I love the flavor of butterscotch chips… hate how GROSS they are for you. My co-op sells Organic Butterscotch chips that are a little better but still pretty high in sugar. These would be great in my chewy samosa bars! http://delicious-knowledge.com/?p=2938

  3. Rach@ twolicious: April 22, 2013

    We can’t even buy butterscotch chips in Australia! They must be bad.
    I cannot wait to try these, I want them in my choc chip cookies now!
    Btw thanks for making life a little healthier, and easier for us gluten free-ks ;)

  4. Amy: April 23, 2013

    The piped ones look so authentic! We loved butterscotch chips as kids. Our grandma would make no-bake cookies out of them, peanut butter, and cornflakes. Not exactly the healthiest, but little kids do like their sugar! ;]

  5. Dina: April 25, 2013

    this is so creative! i’d like to try both versions!

  6. Farrah: May 29, 2013

    This is the third or fourth time I’ve tried to make butterscotch chips. This time I tried the second recipe. I made butterscotch sauce. Will I ever make buttscotch chips I keep trying. Is there any saving this? Help.

  7. dessertswithbenefits: May 30, 2013

    Oh I’m sorry :( So you tried both recipes without success? I’m not really sure what went wrong, did you use the same exact ingredients?

  8. Kelly: July 14, 2013

    Can you use coconut oil instead of the shortening and more Erythritol or Stevia/Xylitol instead of the Sucanat and molasses in the “bake-able” version?. I really love your recipes!.

  9. dessertswithbenefits: July 18, 2013

    Kelly- I haven’t tried using coconut oil instead of shortening but I’m pretty sure that will work! If you use too much erythritol in the baking chips, the chips turn very firm and don’t stay together very well. Sorry!

  10. Karen: November 18, 2013

    Just curious…you say the 2nd recipe is low sugar…did you check the carbs (sugar) for the molasses & sucanat?

  11. Karen: November 18, 2013

    Hi…these look yummy! just wondering…you said low sugar…did you check on how much sugar (carbs) are in the molasses & sucanat?

  12. Karen: November 18, 2013

    Hi…these look yummy! just wondering…you said low sugar…did you check on how much sugar (carbs) are in the molasses & sucanat? well, sucanat is sugar…just wondering the carbs in both?

  13. Kaytee: November 30, 2013

    I was wondering what amount of regular sugar I would use. I can’t have either of the sugars you used. Please let me know what I can use. Am allergic to dairy so have been unable to have butterscotch chips for a long time now.


  14. dessertswithbenefits: December 4, 2013

    For the “bake-able” Butterscotch Chips you can replace the erythritol and sucanat with regular sugar in the same amount (so 1.5 cups total), but preferably a less processed or organic sugar, like evaporated cane juice. I haven’t tried using regular sugar in this recipe, but it should work out just fine :)
    Hope you like the recipe!!

  15. Kasey: March 21, 2014

    Will the second recipe, the cooked one, come out hard and crunchy? I tried another recipe and it came out like peanut brittle. Which is great when needed but I’m trying to make a treat called tumbleweeds for my daughters birthday party. I was considering the first recipe since the tumbleweeds are a non-bake treat. I’m worried about them melting outside if it is warm. What do you think about them getting soft if they are in the shade in temperatures about 80?

  16. dessertswithbenefits: March 22, 2014

    The second recipe is actually soft, kind of like a mix between fudge and caramel. If you press it between your fingers it’ll smush, it’s not hard or crunchy. Make sure to use a candy thermometer when you make it, though, because if the temperature of the mixture gets too high it will become crunchy.
    And those Tumbleweeds sound awesome! I would recommend using the second recipe if it’s going to be hot outside. The first recipe will most likely start to melt and your Tumbleweeds might fall apart :(
    Wish your daughter a happy birthday for me!!

  17. Jaime: December 12, 2014

    I’ve just happened upon your blog. These look great and love the whole food, health promoting ingredients! I have to say though, that microwaving anything is not health promoting. So much healthier and EASY to melt coconut oil in a pan on the stove, no?

  18. Jaime-
    I’m so glad you found my blog! Feel free to melt the coconut oil over the stove :)

  19. Chris Hemmingway: January 30, 2015

    Hi, I’m sure Spectrum Naturals makes a far better product than Crisco, but I’m also aware of the negative eco results of palm oil cultivation. Can’t You just use butter and/or coconut oil; to make these chips? They look so yummy, & I’ve been dreaming of gluten free sugar free Oatmeal Scotties! Thanks! Chris

  20. Chris Hemmingway-
    I definitely understand your concerns about palm oil! I haven’t tried using coconut oil but I’m sure it would work just fine!
    I hope you like the recipe :)

  21. Chris Hemmingway: February 2, 2015

    Thank you, I’ll play around with this, & report successful results. I’ve found that combining substitutes, once I’ve found the right ratios, has worked best. My best example is: All almond milk in pumpkin pie is too thin, all coconut milk, too rich. But 8 oz almond, & 4 oz coconut; just right. I’m so happy that I stumbled on your blog, Chris

  22. Chris Hemmingway-
    That’s genius! You’re a baking natural :)

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