This is a Caramel Slice that works as promised – the creamy caramel sets perfectly and will never be runny, the chocolate won’t crack when cutting it and the caramel won’t ooze out. It’s an easy recipe with no thermometer required.
Essentially, this recipe fixes all the grievances I had with other recipes I’ve tried over my lifetime!
Caramel Slice
It’s practically un-Australian for a bakery to NOT sell Caramel Slice. With a simple coconut biscuit base, soft caramel filling and a chocolate topping, it’s one of those treats that’s craved by kids and grown ups.
I’ve only ever known it as a Caramel Slice, but I was quite interested to learn that overseas, it’s also known as Millionaire’s Shortbread (appropriate!), Caramel Shortbread, Chocolate Caramel Bars.
Doesn’t really matter what you call these. Just the sight of them surely brings a smile to anyone’s face, and that, my friends, is a universal language. 🙂 (“That” being a Food Smile)
Reader Rachel says “Wow! This was really fantastic. I’ve been hunting for a caramel slice that cuts well, doesn’t ooze or crack and had enough filling. This is perfect! So tasty, I love how crunchy the base gets and my mum adores it! I only made it last night, but I don’t think it will last long!”
A Caramel Slice recipe that actually works
I’ve tried countless recipes over the years including from some well known cooks, and classic “best ever” recipes but always experienced problems such as:
-
Runny caramel
-
Chocolate topping cracked when it was cut
I think some recipes make Caramel Slice overly complicated, trying to make the caramel using a traditional candy making method which calls for a thermometer and exact caramel temperatures.
Scratch that. Make Caramel Slice the easy way using condensed milk. Tastes just like you get from the bakeries!
What goes in Caramel Slice
Here’s what you need to make Caramel Slice:
-
Base – a coconut biscuit base, not too sweet (because the caramel filling is plenty sweet!)
-
Caramel filling – the secret ingredient here is condensed milk. So we make a caramel using sugar and butter, then we add condensed milk which thickens it and makes the caramel set;
-
Chocolate topping – the secret to making sure the chocolate doesn’t crack when cut is a touch of oil!
How to make Caramel Slice
There are 3 components to Caramel Slice:
1. Biscuit base – just mix the ingredients together in a bowl, press into a pan and bake:
2. Caramel Filling – bring the butter and brown sugar to a simmer (this is caramel!) then stir in condensed milk. Whisk over low heat for a few minutes to give it some colour, then pour onto the base and bake. Baking is what makes the caramel set once cool.
3. Chocolate Topping – simply melt the topping then spread on the caramel base. To achieve a perfectly smooth surface, just shake the pan gently.
And proof – the chocolate DOES NOT CRACK when you cut into it!!!
These were fridge cold too – you can see the surface is sweating on this hot summer day I made them!
And a side view so you can see how it slices neatly, showing each individual layer:
Normally I try to show a bit of self respect with up close “bite shots” and use a fork…. But I’m not going to lie to you – in this case I just took a big fat bite out of this Caramel Slice!!!
Caramel Slice – Q&A
Here’s a little Q&A section for common questions and problems people face making Caramel Slice!
Why is my caramel slice runny?
Common problems that causes runny caramel include: using low fat condensed milk (ie. skim condensed milk) instead of full fat milk (it will not set properly), you didn’t bake the caramel layer (this makes sure it sets) or you used a recipe where the caramel filling is made without condensed milk (in which case you need a candy thermometer to achieve an exact temperature to ensure it sets).
How do you keep chocolate from cracking when cutting?
Add 1 tablespoon of oil to the melted chocolate – this makes the chocolate topping slightly softer so it doesn’t crack!
How long does caramel slice last?
5 days in an airtight container – in the fridge if it’s warm weather, otherwise in the pantry is fine.
That’s the proper answer.
But does Caramel Slice ever last FIVE WHOLE DAYS in anyone’s house??? 😳😳😳 – Nagi x
Watch how to make it
Hungry for more? Subscribe to my newsletter and follow along on Facebook, Pinterest and Instagram for all of the latest updates.

Caramel Slice
Ingredients
Base
- 1 cup flour, plain/all purpose
- 1/2 cup brown sugar , loosely packed
- 1/2 cup desiccated coconut (US: sweetened finely shredded coconut, Note 1)
- 125g / 4.5oz unsalted butter , melted
Caramel filling
- 125g / 4.5oz unsalted butter , roughly chopped
- 1/2 cup (80g) brown sugar , loosely packed
- 1 tsp vanilla extract (or essence)
- 395g / 14oz sweetened condensed milk (1 can, 300ml) (Note 1b)
Chocolate Topping
- 200g / 7oz dark or milk melting chocolate (US: semi-sweet chocolate chips)
- 1 tbsp vegetable oil
Instructions
Base
- Preheat oven to 180°C/350°F (fan 160°C)
- Grease and line a 28x 18cm (lamington pan) / 7" x 11" rectangle pan with baking/parchment paper (Note 2). Have overhang for ease of removal.
- Mix together Base ingredients and press into a pan (I use an egg flip)
- Bake for 15 minutes until the surface is golden. Cool in fridge if you have time (Note 3).
Caramel
- Lower oven to oven to 160°C/320°F (fan 140°C)
- Place butter, sugar and vanilla in a saucepan over medium low heat. When the butter is melted, whisk to combine with sugar, then just leave it until it comes to a simmer.
- When bubbles appear, add condensed milk. Whisk constantly for 5 minutes (Note 4), until you start getting some big slow bubbles on the base.
- Once bubbles start appearing, whisk for 1 minute, then pour onto Base. Tilt pan to spread evenly.
- Bake for 12 minutes. Don't worry if you get splotchy brown bits (this happens with ovens that don't distribute heat evenly).
- Cool on counter for 20 minutes then refrigerate 30 minutes - bottom of pan should be warm but surface cool (not cold) to touch. (Note 5)
Chocolate
- Place chocolate and oil in a microwave proof bowl. Microwave in 30 second bursts, stirring in between, until chocolate is fully melted (takes me 4 x 30 sec).
- Pour over caramel, spread with spatula. Then gently shake pan to make the surface completely flat.
- Refrigerate 1 hour or until set. Remove from fridge and leave out for 5 minutes to take chill out of chocolate slightly. Then cut into bars or squares to serve!
Recipe Notes:
Nutrition Information:
Originally published 2016, updated with brand new photos and brand new video in March 2020.
For Caramel Monsters
-
Peanut Butter Caramel Tart – dangerously easy
-
Sweetened Condensed Milk Caramel – just place a can of condensed milk in the slow cooker!
More slices and bars
-
Brownies!! Also outrageous Nutella Stuffed Brownies!
-
Strawberry Bars – made with tons of FRESH strawberries!
-
Easiest Ever Raspberries Jam Bars
Life of Dozer
Dozer in his swanky bathrobe. On a scale of 1 to 10, how ridiculous do you think he looks in his bath robe??? 😉
(And on a scale of 1 to 10, how much do you want to see me in my matching robe?! 🤣 It was a GIFT!! I would never!!)
I NEEED HOW MUCH OIL AND SUGAR AND MILK AND EVERYTHING ELSEEEEEEEEE
Sorry it was on there
Love your recipes, working my way through them not one I don’t like as yet! Thank you
That’s awesome Mikki!! Thanks so much 🙂 N x
These turned out as promised. Wonderful! I will freeze some and take them for dessert on a girls’ night dinner with an Australian travelling friend who has only had vanilla slice.
I don’t bake “sweets” very often and I know why.
My Caramel Slice ( this recipe) wasn’t perfection.
My caramel didn’t set as it was supposed to, it was a little runny. I followed the recipe to a tee but alas, disappointing outcome.
That’s why I don’t bake ‘sweets”.
You’re so clever! I followed the recipe exactly and it turned out as promised. It turned out so pretty that I’ve boxed it up to give to a friend for her birthday. Thank you 😘
Is it possible to make this using a sweetener (such as stevia – liquid or granule) as an alternative to the brown sugar?
I’m desperately looking for a low sugar version of caramel slice that actually works.
Delish and easy to follow/make, thanks so much Nagi! Tried these in my Air Fryer and came out well! Love all your recipes 🙂
Can i use a 13″x9″ pan?
Hi Petra, you can and the slice will be thinner – or you can scale the servings up to 15 to change the ingredients and account for a larger pan. N x
Hi, cooked this yesterday but was a bit disappointed by the base and the caramel; the caramel turns out to be grainy(idk what happen, followed the instructions to tee!?) and overall, the base and the caramel had a huge taste of oil, kinda like mantega 😫, think the recipe has too much butter in it! Can you help?! A x
Hi Anais, sounds like something went wrong – the caramel definitely should be grainy and the base not oily. Could there be a chance you have mis measured? The recipe has been tested and made by thousands of people – I know the quantities are correct 🙂 N x
A night in the fridge..and look at it! It sets..and didn’t taste oily anymore, think I should have let it rest on the counter a little more! Awesome recipe..let me tag you to see my chef oeuvre! 😋
I would love to make this, but make a salted caramel version. Have you made salted caramel before?
Hi Chris, you can add 1 tsp of sugar to the caramel to achieve a salted caramel – I have a salted caramel tart here: https://discountspot.info/salted-caramel-tart/%3C/a%3E N x
Thanks Nagi! They turned out really well. Are they freezable?
Hi Ollie, yes you can freeze these 🙂 N x
This was delicious! I’m in central NSW where it’s still cold, so I put the the tray out in the garage, works better than a fridge!
The only issue will be how quickly it disappears!!
Thanks for another amazing recipe Nagi!!
Can you use just normal butter for this recipe or is it just unsalted ? Thanks 😊
Hi Cheryl, I use unsalted in all my cooking as it allows me to control the salt added to a recipe. You can use salted here though – just like a salted caramel slice 🙂 N x
Heya I’ve made them twice there beautiful!!! Love them but I’ve question I made them yesterday left them over night and all the Carmel just melted out of them ? Can you tell me what I’ve done wrong thanks 😊 Cheryl x
Hi Nagi
I made these this a.m. after watching the video and I was having trouble making the caramel come together when I realized you’re down under and I’m in the states, different hemisphere. Turns out I was stirring it in the wrong direction. Got that straightened out and they turned out great. I thank you and my wife really thanks you for another great recipe!
John Craig
I love this John! 😉 N x
I’ve never made caramel slice until I came across your recipe. This recipe is literally perfect. From the first time I made it, it came out amazing and I’ve made it another 8 times since I discovered it 3 months ago because people loved it! Thank you for sharing this recipe 🙂
Loved this, thank you! I had to send my husband to work with most of it so I didn’t eat it all!
Hi, this looks amazing! But does it have to be coconut in the slice, because (For some reason) my family doesn’t really like coconut.
Hi Erin – you can make it without – I mention it in the recipe notes 🙂 N x
I’ve got skim condensed milk and am wondering if I can somehow use it to set the caramel? Would gelatine help? Thanks!
Hi Claire, gelatine won’t work here sorry! I haven’t tried with skim milk – something I’d need to test! N x
Best caramel slice ever!!!! I have made it so many times and it prefect each time. Thank you for sharing this recipe.
You’re so welcome Sally, thanks so much for the great feedback! N x
OMG!! THIS WAS SOOO GOOD!! 100% i willl make it again, and was easier that expected!!!
Wahoo!! That’s great to hear Hannah!!! N x
For the first time I made this recipe without cooling the base.. the caramel split whilst baking! I’d suggest cooling the base, at least for 30 mins. When I cool the base this recipe works perfectly 👍