This keto low-carb caramel sauce recipe is easy to make, thick, creamy but pourable, and has a deep rich caramel flavor. Plus it can also be made paleo and dairy-free!
This paleo, low-carb caramel sauce recipe is super simple to make, creamy, thick but pourable, has a rich flavor, and is sooooo delicious!
It's great with ice cream, fruit, Paleo Cheesecake Bites, Apple Pie, used to make Turtles, or eaten straight off of a spoon!
I've been making this recipe for years. However, after months of recipe testing, I now also have a keto and low-carb version to share with you as well!
Watch the YouTube Video!
See how easy it is to make this recipe on my YouTube channel and let me know what you think!
See the full video here: YouTube Caramel Video
*Note- This was one of my very first videos and we were still working out some kinks!
The challenges of low-carb caramel
When testing my caramel sauce, I quickly found out that erythritol-based sweeteners (such as Swerve and Lakanto) crystallize like crazy and make the caramel grainy. I even tried using the powdered variety and, while it helped, it was still too grainy for me.
Also, it didn't have that deep, caramel flavor I was looking for. The Paleo Caramel Sauce version uses coconut palm sugar, which has a natural caramel flavor. Something the Keto version was lacking.
After weeks of testing, I finally found the magic ingredients to make a super creamy keto caramel sauce with a rich flavor! ...molasses!
Molasses
To add a nice caramel flavor in the low-carb version, I found that you can add 1-2 tsp. of molasses. Along with browning the butter, this makes the caramel have a deep, rich flavor.
While the molasses is optional, I really prefer the caramel with the molasses. The molasses gives it a deep caramel taste that is otherwise missing.
If you're worried about adding molasses to a low-carb recipe, keep in mind that molasses is considered a low glycemic sugar.
One teaspoon only adds 5 carbs to the entire batch! It's also rich in vitamins and minerals such as iron, chromium, magnesium, calcium, vitamin b6, and more!
Sweetener
For the low-carb sweetener, I've found that allulose works best because erythritol-based sweeteners tend to crystalize.
Allulose dissolves beautifully, doesn't crystallize, and has NO aftertaste!
The only issue with allulose is that it's only 70% as other sweeteners, but that's an easy fix - just add more!
If using an erythritol-based sweetener: You'll have to add xanthan gum to keep it from crystalizing and not skip the molasses!
Even with the xanthan gum, it tends to crystallize more if you leave out the molasses. So you really need to use both.
To add the xanthan gum: Very lightly sprinkle in ¼ tsp. when you add the coconut cream and whisk vigorously until it's dissolved. Be sure not to dump it in or it will clump!
For Paleo, we're going to be using coconut palm sugar and honey.
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Butter
For the butter, I prefer to use grass-fed butter because it tastes so much better than regular butter. It’s also way healthier! It has vitamin K-2 (which is good for your arteries!), good fats, and anti-inflammatory properties.
If you are dairy-free, you can use non-dairy butter or non-hydrogenated shortening.
Frequently asked questions
Yes, but you'll have to add xanthan gum to keep it from crystalizing and not skip the molasses! Even with the xanthan gum, it tends to crystallize more if you leave out the molasses. To add the xanthan gum: Very lightly sprinkle in ¼ tsp. when you add the coconut cream and whisk vigorously until it's dissolved. Be sure not to dump it in or it will clump!
Yes! Simply use coconut palm sugar and honey for the sweeteners.
For dairy-free caramel sauce, replace the heavy cream with coconut cream and use dairy-free butter or non-hydrogenated shortening. For coconut cream, place a can of full-fat canned coconut milk in the fridge for 24 hours, then scoop out the coagulated cream. I only recommend Thai Kitchen, Sprouts, and Native Forest brands. Other brands may lend an aftertaste or not separate well.
🔪 Easy instructions
Start by adding ¼ cup of butter (or non-dairy butter) to a saucepan and heat over medium heat. Once melted, bring to a low simmer and simmer for 3 to 5 minutes, or until browned.
Stir occasionally and be careful not to let it burn! Burned caramel is no Bueno!
Add coconut cream or heavy cream, allulose, and molasses. Bring to a low simmer. Simmer for around 10 minutes, stirring occasionally. Again, be sure it doesn't burn!
Then, remove from heat and stir in pure vanilla and a pinch of sea salt.
Allow to cool then transfer to a sealed jar and place in the fridge. The caramel will thicken as it cools.
How to store
This low-carb dairy-free caramel can be stored in the fridge for several weeks.
It may get thick after being in the fridge for a while, so simply re-heat to thin out if needed.
When reheating, be sure to heat slowly! Otherwise, it may separate. The best way to re-heat it is on the stove over low heat.
If it does separate though, simply add it to a food processor and process until it comes back together.
💭 Top tips
- I highly recommend using butter, ghee, or non-dairy butter for best taste. If the butter isn't an option though, you can use non-hydrogenated shortening as a substitute.
- The low-carb caramel may seem thin at first but will thicken once cooled.
- This recipe is fairly sweet. If you prefer your desserts on the less-sweet side, feel free to slightly reduce the sweetener.
- I've never tried making the Paleo Caramel Sauce Vegan. I'd imagine using maple syrup or molasses instead of honey would work, but it will probably slightly change the flavor and turn out a bit thinner.
- While the molasses is optional, I really prefer the caramel with the molasses. The molasses gives it a deep caramel taste that is otherwise missing.
- If you're worried about adding molasses to a low-carb recipe, keep in mind that molasses is considered a low glycemic sugar. One teaspoon only adds 5 net carbs to the entire batch! It's also rich in vitamins and minerals such as iron, chromium, magnesium, calcium, vitamin b6, and more!
- If using an erythritol-based sweetener, you'll have to add xanthan gum to keep it from crystalizing and not skip the molasses! Even with the xanthan gum, it tends to crystallize more if you leave out the molasses. To add the xanthan gum: Very lightly sprinkle in ¼ tsp. when you add the coconut cream and whisk vigorously until it's dissolved. Be sure not to dump it in or it will clump!
- If you're using this caramel in a recipe where it needs to thicken and/or harden, you must use the erythritol-based version! While the allulose version thickens, it will not thicken or harden enough to be used in other recipes.
Looking for more recipes?
If you’ve tried this paleo low-carb caramel sauce or any other recipe on the blog please let me know in the comments below!
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📖 Recipe
Low-Carb Caramel Sauce {Keto With Paleo & Dairy-Free Options!}
Ingredients
Keto Caramel Sauce:
- 4 Tbsp. Butter - can use non-dairy, ghee, or non-hydrogenated shortening
- 6 Tbsp. Allulose - to taste, see notes below for substitutions
- 1 ½ tsp. Molasses - optional but very highly recommended
- ½ Cup Coconut Cream - or heavy cream if not dairy-free
- 2 tsp. Pure Vanilla
- ⅛ tsp Sea Salt
Paleo Caramel Sauce:
- ¼ Cup Allowed Butter or Ghee - can use dairy-free
- ½ Cup Coconut Palm Sugar
- ½ Cup Coconut Cream
- 3 Tbsp. Honey
- 1 tsp. Pure Vanilla
- pinch Sea Salt
Instructions
Keto Caramel Sauce:
- In a medium-sized saucepan, melt the butter over medium heat until melted. Once melted, bring to a low simmer. Simmer 3 to 5 minutes, or until the butter is browned, stirring occassionally and be sure not to let it burn!
- Add the coconut cream, allulose, and molasses. Then, turn the heat down to a low simmer and simmer 8 to 10 minutes, stirring occasionally, or until a deep golden brown and slightly thickened. Again, be careful that it doesn't burn!
- Remove from heat and stir in the pure vanilla and sea salt.
- Allow to cool. Then, transfer to a sealed container and place it in the fridge. Caramel thickens in the fridge. Stir before serving.
Paleo Caramel Sauce:
- Over medium-high heat, melt butter, coconut palm sugar, coconut cream, and honey. Stir constantly until mixture reaches a boil and sugar is completely dissolved.
- Remove from heat. Stir in the pure vanilla and pinch of sea salt.
- Allow to cool, then transfer to a sealed container and place in the fridge. Caramel will thicken in the fridge after an hour or two. Stir well before serving.
Notes
- For coconut cream, place full-fat canned coconut milk in the fridge for 24 hours and scoop out the coagulated cream. I only recommend the Thai Kitchen, Native Forest, or Sprouts brand. Other brands may not separate as well or leave a funny aftertaste.
- I highly recommend using butter, ghee, or non-dairy butter for the best taste. If the butter isn't an option though, you can use non-hydrogenated shortening as a substitute.
- These are both fairly sweet, so they may be too sweet for some palates. If you prefer your desserts on the less-sweet side, feel free to slightly reduce the sweeteners.
- I've never tried making the Paleo Caramel Sauce Vegan. I'd imagine using maple syrup or molasses instead of honey would work, but it will probably slightly change the flavor and the maple syrup may make it turn out a bit thinner.
- While the molasses is optional, I really prefer the caramel with the molasses in the keto version. The molasses gives it a deep caramel taste that is otherwise missing. It also covers up any "sugar-free" aftertaste.
- If you're worried about adding molasses to a Keto recipe, keep in mind that molasses is considered a low glycemic sugar. One teaspoon only adds 5 net carbs to the entire batch! It's also rich in vitamins and minerals such as iron, chromium, magnesium, calcium, vitamin b6, and more!
- To use an erythritol-based sweetener, you'll have to add xanthan gum to keep it from crystalizing and not skip the molasses! Even with the xanthan gum, it tends to crystallize more if you leave out the molasses. You really need to use both. To add the xanthan gum: Very lightly sprinkle in ¼ tsp. when you add the coconut cream and whisk vigorously until it's dissolved. Be sure not to dump it in or it will clump!
- If you're using this caramel in a recipe where it needs to thicken and/or slightly set-up, you must use the erythritol-based version! The allulose version will not thicken or set-up enough to be used in other recipes. The paleo version will thicken and set up as-is.
- Leftovers can be stored in the fridge for several weeks. It may get thick after being in the fridge for a while, so simply re-heat to thin out if needed. When reheating, be sure to heat slowly! Otherwise, it may separate. The best way to re-heat it is on the stove over low heat. If it does separate though, simply add it to a food processor and process until it comes back together.
- Even though it looks like allulose has 5 carbs per teaspoon on the package, it does not affect blood sugar and is considered to have 0 net carbs.
- Nutrition Facts are for the Keto Caramel Recipe and include molasses.
- Nutrition information for 1 Tbsp. of the Paleo Caramel Sauce is as follows: Calories: 76 Carbs: 7 Protein: 1 Fat: 5 Fiber: 1
- Are you more of a visual learner? Watch the YouTube video!!! *Note- This was one of my very first videos and we were still working out some kinks.
Nutrition
Nutritional information is approximate and may vary.
Looking for more information on the keto diet? Check out these resources:
Thank you for this recipe! I love Caramel, and I’ve not been able to find a good milk free keto car mode so I’m looking forward to trying this one. In your nutrition facts, what is the serving size? Thanks! I am also wondering if you have tried this with Choc Zero Carmel or maple syrup instead of the Lakanto? I have used both syrups for various things, including on keto pancakes and in coconut yogurt :-), and I strongly prefer Choc Zero over Lacanto, so wondering if it would work in this recipe ?
Hi Shayla! The serving is approximately 1 Tbsp. I haven't tried this with Choc Zero but I've heard great things about it! Also, lately, I've been adding just a tsp or two of molasses instead of sugar-free maple syrup because it adds such a great, deep caramel flavor with very few carbs and I'm loving it so much better than maple syrup! I updated the recipe card to include the change 🙂
-Cassidy
I'm always so amazed at how many things can be made Keto friendly. Coconut cream is such a great ingredient - does this caramel taste strongly of coconut?
Hi Kortney! I don't think it has a coconut taste at all, but I use coconut all the time and may just be used to it! There are so many flavors going on though, if you can taste the coconut it would be very faint 🙂 Hope that helps!!!
what would you suggest using for the non-dairy butter? I have to be dairy free. Thanks for your help
This looks so delicious!
Hi Patricia! I prefer Earth Balance Buttery Spread (the soy free version) because it most closely tastes and melts like butter and is found in most stores now 🙂 I've see that Nutiva has a butter flavored coconut oil that many people like, but I'm just not sure if coconut oil would work in this recipe. If you give it a shot let me know how it turns out!!! Hope that helps!!!
-Cassidy