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Stacked homemade coconut caramels topped with flaky sea salt on a cream-colored plate, featuring a rich buttery caramel texture with toasted coconut pieces throughout.
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Coconut Caramels

These Coconut Caramels are soft, buttery, chewy, and packed with rich toasted coconut flavor. Made with brown sugar, sweetened condensed milk, heavy cream, and toasted coconut, these homemade caramels have a smooth candy-shop texture with a deep caramelized flavor that melts in your mouth. Perfect for holidays, edible gifts, dessert platters, or anytime you want a decadent homemade candy.
Course Candy, Dessert, Snack
Cuisine American
Keyword buttery coconut caramels, candy shop style caramels, caramel candy squares, caramel coconut bites, chewy caramel candy, chewy coconut candy, coconut candy recipe, coconut caramels, coconut dessert recipe, holiday candy recipe, homemade candy, homemade caramel recipe, homemade coconut caramels, soft caramel candies, toasted coconut candy
Prep Time 15 minutes
Cook Time 20 minutes
Cooling Time 6 hours
Total Time 6 hours 35 minutes
Servings 36 caramels
Calories 145kcal
Cost $12 for entire recipe

Equipment

  • Heavy-bottom saucepan
  • Candy thermometer
  • Silicone spatula
  • 8×8-inch metal baking pan
  • Parchment paper
  • Sharp knife
  • Cutting board
  • Small skillet (for toasting coconut)
  • Measuring cups and spoons

Ingredients

  • 3/4 cup unsalted butter
  • 3/4 cup packed light brown sugar
  • 1/3 cup granulated sugar
  • 1 cup light corn syrup
  • 1 can 14 ounces sweetened condensed milk
  • 1/2 cup heavy cream room temperature
  • 3/4 teaspoon fine sea salt
  • 2 teaspoons vanilla extract
  • 1/2 teaspoon coconut extract
  • 1 cup sweetened shredded coconut toasted and finely chopped
  • Flaky sea salt for topping optional

Instructions

  • Line an 8x8-inch metal baking pan with parchment paper and lightly grease the parchment and sides.
  • Toast the shredded coconut in a dry skillet over medium-low heat for 5-7 minutes, stirring constantly, until golden brown and fragrant. Let cool completely, then finely chop.
  • In a heavy-bottom saucepan, combine the butter, brown sugar, granulated sugar, corn syrup, sweetened condensed milk, heavy cream, and salt.
  • Cook over medium-low to medium heat while stirring constantly with a silicone spatula until the mixture is smooth and fully combined.
  • Continue cooking and stirring until the caramel reaches exactly 245°F on a candy thermometer. The caramel should be thick, glossy, and medium caramel brown.
  • Immediately remove from heat and stir in the vanilla extract, coconut extract, and toasted coconut until evenly combined.
  • Pour the caramel into the prepared pan and smooth the top.
  • If desired, sprinkle lightly with flaky sea salt.
  • Let the caramel cool completely at room temperature for 4-6 hours or overnight.
  • Lift the caramel from the pan using the parchment paper and cut into squares with a lightly greased sharp knife.
  • Wrap individual caramels in wax paper if desired.

Notes

  • Toasting the coconut is highly recommended because it adds a deeper, nuttier coconut flavor and improves the overall caramel taste.
  • Use a heavy-bottom saucepan to help prevent scorching and greasy separation during cooking.
  • Stir constantly while cooking to keep the caramel smooth and evenly heated.
  • For the best chewy texture, remove the caramel from the heat immediately once it reaches 245°F.
  • Even a few degrees above 245°F can create firmer caramels.
  • Finely chopping the toasted coconut helps the candies slice more cleanly and gives a smoother texture.
  • Room temperature heavy cream blends more evenly into the caramel mixture.
  • Avoid refrigerating the caramel while it sets because condensation can create sticky surfaces.
  • Lightly grease your knife before cutting for cleaner caramel squares.
  • For individually wrapped candies, allow the caramel to cool overnight before wrapping.
  • A small sprinkle of flaky sea salt on top balances the sweetness beautifully.
  • Store caramels in an airtight container at cool room temperature for up to 2 weeks.
  • Freeze wrapped caramels for up to 3 months for longer storage.