Butterscotch Granola Cake from Alice’s Cookbook
When I was a kid, a trip through the Dairy Queen drive-thru felt like a big deal, mostly because of the dip cones. I can still picture sitting in the car, watching them take a plain vanilla cone and dip it into that glossy coating that somehow hardened in seconds. On a good week, my mom and I would go together, and without fail we ordered the same thing every time. Not the chocolate dip, but butterscotch. We both loved butterscotch in all its forms, and a butterscotch dip cone felt like hitting the jackpot.
So naturally, when I came across a butterscotch cake in Alice’s cookbook, it attracted my attention. I’m still making my way through her recipes, and this one jumps off the page and practically demands to be made. Butterscotch Granola Coffee Cake. Is there anything more 1970s than butterscotch and granola showing up in the same recipe?

I gave Alice’s version a try, but early on I had a feeling it might work better as a Bundt cake. Sometimes these older recipes tend to overbake, and I’m not entirely sure why. Maybe ovens were different, maybe baking times were a little generous, or, in my case, there’s a high probability of user error.
Whatever the reason, my first attempt came out a bit dry with a slightly overdone edge. Butterscotch deserves better. And I guarantee you Alice didn’t make it this way, straight off the recipe.
So I went back to the mixer and made a few adjustments. The result ended up being a real winner. The cake is soft, rich, and full of that warm butterscotch flavor that feels right at home in a vintage recipe. It has just enough sweetness, a little texture from the granola, and the kind of comfort that makes you want to cut one more slice.
And if you really want to lean all the way into the nostalgia, I’m pretty sure a slice of this served with a scoop of butter pecan ice cream would be just about perfect..
Butterscotch Granola Coffee Cake (Bundt Version)
Preheat oven to 350°F.
Grease and flour a 10–12 cup Bundt pan thoroughly.
In a large bowl combine butter, oil, sugar, sour cream, eggs and vanilla. Beat until smooth.
Add flour, baking soda, baking power, salt, cinnamon, orange peel. Mix until combined. Fold in the granola.

In a small bowl combine oats, butterscotch chips, brown sugar, cinnamon, and melted butter.
Spread half of the batter evenly into the Bundt pan.

Sprinkle the oat filling in a ring over the batter, keeping it about ½ inch away from the edges of the pan.

Top with the remaining batter and smooth the surface.

Bake 40–50 minutes, until the top is golden and a toothpick inserted into the cake comes out with a few moist crumbs.

Allow the cake to cool in the pan for 20 minutes, then turn out onto a wire rack to cool completely.

In a small saucepan over low heat combine:
- butterscotch chips
- butter
- half-and-half
Stir until melted and smooth.

Remove from heat and stir in salt.
Allow the glaze to cool slightly until thickened, then drizzle generously over the cooled cake.


Butterscotch Granola Coffee Cake
Ingredients
Equipment
Method
- Preheat oven to 350°F.Grease and flour a 10–12 cup Bundt pan thoroughly.
- In a large bowl combine butter, oil, sugar, sour cream, eggs and vanilla.
- Beat until smooth.
- Add flour, baking soda, baking powder, salt, cinnamon and orange peel.
- Mix until combined.
- Fold in the granola.
- In a small bowl combine oats, butterscotch chips, brown sugar, cinnamon, and melted butter.
- Spread half of the batter evenly into the Bundt pan.
- Sprinkle the oat filling in a ring over the batter, keeping it about ½ inch away from the edges of the pan.
- Top with the remaining batter and smooth the surface.
- Bake 40–50 minutes, until the top is golden and a toothpick inserted into the cake comes out with a few moist crumbs.
- Allow the cake to cool in the pan for 20 minutes, then turn out onto a wire rack to cool completely.
- In a small saucepan over low heat combine butterscotch chips, butter and half and half.
- Stir until melted and smooth.
- Remove from heat and stir in salt.
- Allow the glaze to cool slightly until thickened, then drizzle generously over the cooled cake.
Nutrition
Notes
• Let the glaze cool slightly before pouring so it forms thicker ribbons on the cake.
• The oil in the batter helps keep the cake moist while the butter provides flavor.
• The oat filling adds a gentle crunch and complements the granola in the batter.