How to Make Caramel Squares


Caramel Squares

Years ago, I made these squares quite often and they were always a huge hit. But for some reason…my age perhaps??…. I forgot all about them until a couple of days ago. I was thumbing through some older recipe books and discovered this recipe, scribbled on a piece of paper, shoved between some pages.

I love so much about these squares! They’re caramel, which is a nice change and the caramel frosting is amazing. Plus they’re chock full of coconut and walnuts, so really, how could you go wrong!

I’ve already decided I am going to add these to my Christmas baking list, I think they will be a great contrast to my usual holiday treats!

Caramel Squares

Here’s a little baking tip. To keep your parchment paper in place, use 4 metal bulldog clips, they work like a charm.

These are 2-inch clips because that’s what I had on hand when I first started securing my parchment this way, but if you’re purchasing them, a 1-inch clip would be less bulky.

Caramel Squares


4.8 from 6 reviews
Caramel Squares
  • ¼ cup butter
  • 1 cup packed brown sugar
  • 1 large egg, beaten
  • ¾ cup flour
  • 1 tsp. baking powder
  • ¼ tsp. salt
  • 1 cup flaked coconut
  • ½ cup chopped walnuts
  • ¼ cup butter
  • ½ cup packed brown sugar
  • 3 Tbsp. milk
  • 1 cup icing sugar
  2. Preheat oven to 350 degrees F.
  3. In a large saucepan, melt butter. Remove pan from heat and add brown sugar, stir to combine and then add beaten egg. Mix well.
  4. Whisk flour, baking powder, and salt to combine.
  5. Add flour mixture, coconut and nuts to saucepan, stir well to combine. The mixture will be quite thick.
  6. Spread to the bottom of a parchment lined 9” square baking pan. (To facilitate spreading this thick mixture, you can slightly dampen, with water, the tool you are using. I usually use an offset spatula, butter knife or the back of a soup spoon)
  7. Bake for 30 minutes or until golden. (Don't overbake or the squares will be dry)
  8. Cool completely before frosting.
  10. Combine butter, brown sugar and milk in a medium saucepan.
  11. Bring to a gentle boil and simmer for an additional two minutes.
  12. Cool by sitting the pan in an inch or so of cold water and stirring.
  13. When cool, stir in icing sugar. (If frosting is too stiff, add a few drops of milk and continue stirring until a spreadable consistency.)
  14. Smooth over cooled squares and cut when icing is set.
  15. Makes 25 squares


Caramel Squares

As always, if you have any questions at all, feel free to ask and I will do my very best to answer.

Looking for some more great recipes for squares? Check out these:

Confetti Squares 

Chocolate Chip Squares

Chocolate Mousse Squares

Dark Chocolate Cookie Butter Blondie Bars

 Nanaimo Bars

Peanut Butter Balls

Raspberry Squares

Sex in a Pan 

Skor Squares

Vanilla Mocha Fudge Squares

What are your favourite squares to bake during the holidays?



  1. Elizabeth Vlug says

    These do sound delicious. And I love that caramel flavour. The icing sounds divine. Thanks for sharing. I am in the process of trying to simplify my Christmas baking list …..not sure I am doing a great job on that one. lol.

  2. That is too funny that you chose those squares. Only a couple of weeks ago I made…. for the first time in forever… a very similar square with caramel icing. I totally love these and am glad you now have the recipe so I don’t have to keep digging through my endless pieces of paper recipes to find it! Thanks for posting. :-)

  3. these squares sound delicious I am going to add them to my baking- carmel mmmm

  4. These look so yummy! Thank you for sharing your recipe.

  5. These squares sound awesome!! I do not have those kind of clips but I use clothespins, they work the same as long as they hold the paper I’m all good, just remember to remove them before sticking into the oven!

  6. thanks for the recipe and ideas.

  7. These are different and so I plan on making…Sounds so good! ty

  8. Christy Peeples DuBois says

    I love caramel anything that I’ve tried to date and these sound and look so yummy. I may try them. I say may because the last time I tried caramel icing it bubbled up into one huge bubble and burst all over everywhere. It would have been quite comical had I not had to clean it up.
    Thanks for the binder tip. I will definitely use that tip.

  9. Wow! I love the sound of these caramel squares and they not only look delicious for a treat but are also something that I have never tried before. Thanks for sharing the recipe for us. :)

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