Arlene's Caramel & Streusel Coffee Cake is a decadent, bakery-style dessert that combines moist yellow cake with swirls of caramel and a buttery streusel topping. Perfect for coffee lovers or as a centerpiece at brunch, this cake is a true showstopper. The layers of flavor—sweet caramel, aromatic cinnamon, and creamy glaze—make each bite a delight. It’s an ideal treat to share with loved ones, whether for special occasions or a cozy afternoon indulgence. Best of all, the recipe is straightforward, with simple ingredients and step-by-step instructions to ensure you achieve perfection every time.
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Preheat your oven to 350°F. If using a convection oven, note that the baking time may be reduced by about 10 minutes. Prepare a 9x13-inch glass baking dish by spraying it generously with non-stick cooking spray. Glass is recommended for even baking and a beautiful presentation.
In a large mixing bowl, combine the cake mix, vanilla pudding mix, vegetable oil, water, and eggs. Mix on medium speed for exactly 8 minutes to create a smooth, fluffy batter. Add the butter extract and vanilla extract, mixing just until incorporated.
Pour the batter into the prepared baking dish, spreading it evenly. Set it aside while you prepare the streusel topping. In a separate bowl, mix together the white sugar, brown sugar, cinnamon, and Bisquick. Add the cold butter pieces and, using a pastry cutter or your fingers, blend until the mixture resembles coarse crumbs.
Sprinkle the streusel mixture evenly over the cake batter. For a swirled effect, use a knife or chopstick to create “S” shapes through the batter, going no deeper than 1 inch. This step ensures pockets of streusel throughout the cake.
Drizzle the warmed caramel topping over the surface of the swirled batter. Place the dish in the oven on the middle rack and bake for 40–45 minutes, or until a toothpick inserted in the center comes out clean. Allow the cake to cool on a wire rack for at least 10 minutes before glazing.
To make the glaze, warm the milk or cream slightly. In a small bowl, whip the softened cream cheese with the hot milk, melted butter, and powdered sugar. Add the vanilla extract and stir until smooth and creamy. Drizzle the glaze over the cooled cake, letting it cascade down the sides for a beautiful finish.
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For an extra caramel boost, drizzle additional caramel sauce over the glaze just before serving. If you’d like to elevate the flavor further, sprinkle chopped pecans or walnuts on top of the streusel before baking. Store leftovers in an airtight container in the fridge, and reheat slices slightly before serving to maintain their fresh-from-the-oven flavor.
Arlene's Caramel & Streusel Coffee Cake is a recipe that blends ease and elegance, resulting in a dessert your guests will rave about. From its moist texture to the gooey caramel and buttery streusel, it’s a treat that feels indulgent yet approachable. Pair it with a steaming cup of coffee or tea for the ultimate experience. After trying this recipe, explore more of our coffee cake variations to keep the inspiration flowing. Share this recipe with friends and family, and don’t forget to let us know how yours turned out!
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