Healthy Homemade Butterscotch Chips (2 Ways)

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!

–   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –   –

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  (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!

34 comments on “Healthy Homemade Butterscotch Chips (2 Ways)

  1. 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!

  3. 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. 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. Pingback: Desserts With Benefits

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

  7. Pingback: Desserts With Benefits

  8. 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.

    • dessertswithbenefits

      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?

  9. 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!.

    • dessertswithbenefits

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

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

  12. 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. 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.


    • Kaytee-
      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!!

  14. Pingback: Trying Out Chef Bradley Ogden’s Butterscotch Pudding Recipe | Focus:Snap:Eat

  15. 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?

    • Kasey-
      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!!

  16. Pingback: A Christmas Roundup |

  17. 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. Chris Hemmingway

    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

  19. Chris Hemmingway

    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

  20. Chocolate Fanatic

    I found a recipe for peanut butter marshmallow squares, which use melted butterscotch chips. I was going to ask my mom to make these, but I found out (before I saw this) that Nestle’s butterscotch chips use dyes. 🙁

    Would these work for that recipe? And, it also uses 10 ounces of butterscotch chips. How much will this recipe make? 🙂

    • Hmmm, I’m not sure if it would work because I haven’t seen the entire recipe you’re talking about and what else is in it… is the butterscotch used more as a flavoring or a binder?
      From what you said, I would say MAYBE 😀
      If the PB Marshmallow Squares are served chilled, I’d say the no-bake version of my DIY Butterscotch Chips (the 1st recipe) will work. If the Squares are served at room temp, I’d recommend using the “bake-able” version (2nd recipe).
      Crossing my fingers it works out for you!

  21. Thank you so much for this recipe! My family has a cookie recipe that my mom made when I was a kid. It features butterscotch chips and I’ve not known what to do, as I’ve not wanted to use the fake food chips. I will give this recipe a try for sure! Thanks again!

  22. Good lawd! I just priced this out. $38 for Arrow root starch?!?! And it gets worse! This is one expensive butterscotch treat! I love butterscotch! But at these prices, this gluten/dairy allergy cook will have to find another treat!

  23. Hi I just found your site! Want to make butter beer 🍻 fudge but do NOT want to use those gross chips! Do I googled and found you! 🙂 Which set of chips would work for melting into fudge? I’m guessing the first batch? Since I’m melting them on the stove , they don’t have to look pretty right? 😁

Leave a Reply

Your email address will not be published. Required fields are marked *