This chocolate caramel slice has three layers: a buttery coconut shortbread base, a thick brown sugar caramel, and a glossy chocolate topping that sets in the refrigerator.
It is an Australian bakery classic that is simple to make at home with pantry items. Cut it into small squares because the caramel and chocolate are rich, and a little goes a long way.
Table of Contents
Why This Chocolate Caramel Slice Recipe Works
The base is baked briefly so the flour is cooked through and the shortbread turns crisp and golden. Shredded coconut adds a toasty chew that holds up under the soft caramel.
The caramel is made on the stove with butter, brown sugar, vanilla, and sweetened condensed milk. Stirring constantly keeps it from scorching and gives a smooth, fudgy texture that slices cleanly after chilling.
A little vegetable oil in the melted chocolate keeps the topping glossy and stops it from cracking when you cut the squares.
Ingredients for Chocolate Caramel Slice
- 1 cup all purpose flour (for the base)
- 1/2 cup packed brown sugar (for the base)
- 1/2 cup unsweetened shredded coconut (for the base)
- 9 tablespoons unsalted butter, melted (for the base)
- 9 tablespoons unsalted butter, cut into pieces (for the caramel)
- 1/2 cup packed brown sugar (for the caramel)
- 1 teaspoon vanilla extract (for the caramel)
- One 14 ounce can sweetened condensed milk (for the caramel)
- 7 ounces semi sweet chocolate chips or chopped chocolate (for the topping)
- 1 tablespoon vegetable oil (for the topping)
All purpose flour: Flour gives the base structure. It is baked until golden so the finished slice is safe and crisp.
Shredded coconut: Unsweetened coconut adds flavor and chew to the base without extra sugar.
Brown sugar: It gives both the base and the caramel a deep molasses note.
Sweetened condensed milk: It thickens into the caramel as it cooks. Add it slowly and keep stirring.
Chocolate and oil: Semi sweet chocolate balances the sweet caramel, and the oil makes the topping melt smoothly and cut cleanly.
How to Make Chocolate Caramel Slice
1. Prep the pan Heat the oven to 350 degrees F. Line an 8 inch square pan with parchment paper, leaving an overhang on two sides.
2. Mix the base Stir the flour, 1/2 cup brown sugar, and coconut together. Pour in the melted butter and mix until the crumbs hold together.
3. Press and bake Press the mixture firmly into the bottom of the pan. Bake 15 to 18 minutes until golden at the edges, then cool for 15 minutes.
4. Start the caramel In a saucepan, combine the chopped butter, 1/2 cup brown sugar, and vanilla over medium heat. Stir until the butter melts and the sugar dissolves.
5. Thicken the caramel Slowly stir in the condensed milk. Cook 8 to 10 minutes, stirring constantly, until the mixture thickens and turns a deep golden color.
6. Layer the caramel Pour the caramel over the base and spread evenly. Cool for 30 minutes at room temperature.
7. Add the chocolate Melt the chocolate with the oil in the microwave in 30 second pops, stirring until smooth. Pour over the caramel and spread to the edges.
8. Set and slice Refrigerate for at least 2 hours until the chocolate is firm. Lift out of the pan and cut into 16 squares with a hot knife.
How to Serve Chocolate Caramel Slice
Cut the slice into small squares and serve with coffee, tea, or a glass of cold milk. It makes a great addition to a dessert platter with fudgy chocolate chunk brownies and red velvet brownies. For variety, add soft double chocolate chip cookies and a slice of cinnamon streusel coffee cake.
How to Store and Reheat Chocolate Caramel Slice
Store the squares in an airtight container in the refrigerator for up to 5 days. Let them sit out for 10 minutes before serving so the caramel softens slightly. Separate the layers with parchment paper to prevent sticking. To freeze, wrap the squares tightly and freeze for up to 2 months, then thaw overnight in the refrigerator.
Tips and Variations for Chocolate Caramel Slice
Press the base firmly. Use the bottom of a measuring cup to compact the crumbs so the base does not crumble when sliced.
Stir the caramel constantly. Use a wooden spoon and scrape the bottom to prevent scorching.
Watch the color. Look for a deep golden caramel. Pale caramel stays soft and runny.
Cool the caramel layer. Pouring chocolate onto hot caramel makes the layers blend together, so wait 30 minutes.
Use good chocolate. Quality chocolate chips or chopped bars melt smoothly for a glossy top.
Slice with a hot knife. Dip the knife in hot water and wipe it dry between cuts for clean edges.
Add flaky salt. A light sprinkle of flaky sea salt on the chocolate balances the sweetness.
Skip raw flour. Do not eat raw flour, and see this OSU Extension article on raw dough safety for details.
Frequently Asked Questions About Chocolate Caramel Slice
What is chocolate caramel slice?
It is an Australian bar made from a baked shortbread base, caramel made with condensed milk, and a layer of chocolate. It is similar to millionaire shortbread, which is popular in other countries.
Why did my chocolate caramel slice caramel turn grainy?
Grainy caramel usually means the sugar did not fully dissolve before the condensed milk went in. Melt the butter and sugar completely over medium heat and stir steadily.
How long does chocolate caramel slice need to set?
Chill it for at least 2 hours so the chocolate hardens and the caramel firms. Overnight chilling makes slicing even easier.
Can I make the base without coconut?
Yes. Replace the coconut with another 1/2 cup of flour or finely chopped nuts, though the base will taste less toasty.
Why did the chocolate crack when I cut it?
Cold, hard chocolate can crack under a cold knife. Warm the knife in hot water, and the oil in the topping will help keep the chocolate from shattering.
Chocolate Caramel Slice
Equipment
- 8 Inch Square Baking Pan
- Parchment paper
- Medium saucepan
- Wooden spoon
- microwave safe bowl
- Sharp knife
Ingredients
Main Ingredients
- 1 cup all purpose flour for the base
- ½ cup brown sugar packed, for the base
- ½ cup unsweetened shredded coconut for the base
- 9 tbsp unsalted butter melted, for the base
- 9 tbsp unsalted butter cut into pieces, for the caramel
- ½ cup brown sugar packed, for the caramel
- 1 tsp vanilla extract for the caramel
- 1 can sweetened condensed milk 14 oz, for the caramel
- 7 oz semi sweet chocolate chips or chopped chocolate, for the topping
- 1 tbsp vegetable oil for the topping
Instructions
Cooking
- Prep. Heat the oven to 350 degrees F and line an 8 inch square pan with parchment. Make the base. Mix the flour, brown sugar, and coconut, then stir in the melted butter until crumbly and press firmly into the pan.
- Bake the base. Bake 15 to 18 minutes until golden at the edges, then cool 15 minutes.
- Cook the caramel. Melt the butter, brown sugar, and vanilla over medium heat, then stir in the condensed milk and cook 8 to 10 minutes, stirring constantly, until thick and deep golden.
- Layer. Pour the caramel over the base and cool 30 minutes.
- Top. Melt the chocolate with the oil, pour over the caramel, and spread evenly.
- Chill and cut. Refrigerate at least 2 hours, then cut into 16 squares with a hot knife.









