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:
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Runny caramel
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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:

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Base – a coconut biscuit base, not too sweet (because the caramel filling is plenty sweet!)
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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;
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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
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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
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Sweetened Condensed Milk Caramel – just place a can of condensed milk in the slow cooker!
More slices and bars
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Brownies!! Also outrageous Nutella Stuffed Brownies!
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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!!)

This taste amazing! Have made it three times these past two weeks and every time was mouth watering good. We added sea salt flake to the top and it ties everything together perfectly.
Beware, too much will make it through the breastmilk and make bub uncomfy and possibly really poopy. 😁
These are amazing! They get inhaled every time I make them and I’ve been told more than once by various people that this is the best caramel slice they’ve ever eaten.
I make a few minor adjustments – all butter I use is salted, I add some salt flakes into the caramel before pouring that layer and I sprinkle salt flakes on top of the dark chocolate layer. Amazing every time.
I’ve also made this GF when needed – I swap the plain flour for GF flour 1:1 (I use White Wings brand) – perfect – doesn’t change flavour or texture.
I used to make caramel slice using a different recipe, the exact same one for years. It was so hit or miss with the caramel setting and it drove me mad. Silly me for not going straight to Nagi!
This slice is amazing, every time.
The best thing is I have directly swapped the flour in the base with GF with no issues *and* subbed the condensed milk with the vegan (oat) version to accommodate two of the nurses I work with.
Even better? I straight up swap all of the dry base ingredients for *two* packets of the Arnott’s GF scotch fingers and it works a treat. No coconut for those who aren’t fans!
This is such an easy, delicious, totally fail proof caramel slice that never lasts more than a few hours at work (so I can’t speak for how well it keeps!!)
Every week I ask my son what sweet treat he would like for the week and he always picks this caramel slice recipe! He is about to travel 1.5hrs away to do a week study for his apprenticeship and I am up early to make it! He loves it and so do the boys that he shares it with!
Very easy to make! Recipe easy to follow!
I added a bit of cayenne to the chocolate when melted & sprinkled a few chilli flakes over the top when setting in the pan. Also some Maldon sea salt flakes to the caramel. Pretty & yummy!
I added a bit of cayenne to the chocolate when melted & sprinkled a few chilli flakes over the top when setting in the pan. Also some Maldon sea salt flakes to the caramel. Pretty & yummy!
Help! I followed the recipe exactly, but my base did not go biscuity at all even after 25 mins in oven. Any ideas why?
I had the same problem the first batch I made. The next batch I increased the flour to one cup and it was a perfect shortbread base.
Thanks Erin, I’ll try this next time! My normal Scottish shortbread recipe doesn’t have coconut, but does have some rice flour mixed with the plain flour for a guaranteed crumbly “short” result.
Thanks Erin for taking the time to reply!
100/10 so yummy… only thing I change is using salted butter in the base as it helps bring out the flavours better!
This is absolutely delicious!!!
I used your shortbread recipe for the base and I didn’t read it properly where you said to use double the recipe (until I reread it after). It is still perfect without it being doubled. I love all your detailed explanations. My first time making caramel slice and I’ll definitely make it again. It’s so rich and decadent, I cut it into 24 pieces and the pieces still seem more than enough. I love Twix bars and using the shortbread base this is like a Twix bar on steroids. So yummy!!
This is the best caramel slice I ever made. Chefs kiss 😙
There is a kiwi version in our bible…the Edmonds cook book….that uses dark brown sugar and golden syrup in the caramel layer. So good
Nagi…this is the best fkn caramel slice I’ve ever had in my LIFE! 🤤
Thank you for being the goddess of great food!
My mum called while I was doing the caramel.. straight to MessageBank 😂 great recipe, I’ve never made it before and turned out perfect!
Nagi, your recipe notes have taught me so much! You are an absolute legend! Thank you for all you do!
So easy and absolutely delicious. The caramel set perfectly and I followed the instructions on cutting it which resulted in beautiful layers.
Public service announcement: Caramel slice is better with white sugar – at least for the caramel layer.
The caramel will be lighter in colour but it will taste “fresher”.
With brown sugar it is more like dulce du leche, work white sugar more like… Werther’s.
Thank you, I love the white sugar version!
Love this recipe and so does everyone I’ve made it for so far. My partner and I aren’t fans of coconut and even though the recipe says it can’t be substituted I swapped it out for the same amount of rolled oats and it’s awesome 👍🏼
I made this caramel slice but was a bit pale and noticed that Nagi used a darker brown sugar in her video. I did not see that until after I made mine. My first attempt at making caramel slice and made the base gluten free. Can anyone tell me is that the reason for the caramel to be pale in colour
It could potentially be the butter/condensed milk that you used! If you used a homebrand condensed milk, they tend to be lighter in colour.
I made these for the first time today and OMG they are devine! My husband and son who are self-proclaimed caramel slice connoisseurs, loved this recipe. It’s definitely going to be a regular in our house now. Thank you Nagi!
Incredible!!!