If you’re on the hunt for a dessert that’s colorful, playful, and unapologetically decadent, look no further than this Butter Cake with Peanut Butter Frosting. Picture a soft, buttery crumb infused with hints of peanut butter, speckled with vibrant, melty M&M’S Peanut Butter candies, and slathered with the silkiest, most addictive peanut butter frosting you can imagine. Whether you’re baking for a birthday, a potluck, or just a Tuesday pick-me-up, this cake brings undeniable joy with every bite.

Ingredients You’ll Need
The magic of Butter Cake with Peanut Butter Frosting comes from a lineup of pantry staples, each playing a vital role in the symphony of flavors and textures. Every ingredient, from creamy peanut butter to a dash of brown sugar, helps create the cake’s swoon-worthy crumb and luscious topping.
- All-purpose flour: Gives structure and body to the cake for a perfect, tender bite.
- Baking powder & baking soda: These leaveners ensure a light, fluffy rise in every slice.
- Salt: Enhances and balances the sweetness, allowing the peanut butter to shine.
- Unsalted butter: Brings moisture and that unmistakable rich flavor to both the cake and frosting.
- Creamy peanut butter: The star player, delivering nutty depth and creaminess throughout.
- Granulated sugar & brown sugar: A sweet balance that also keeps the crumb soft and rich.
- Eggs: Bind the ingredients together and give the cake its tender texture.
- Vanilla extract: Rounds out the flavors and adds warmth to the cake and frosting.
- Buttermilk: Adds tang and extra moisture for a plush crumb.
- M&M’S Peanut Butter candies: Pops of color and delightful crunch—irresistible in every bite.
- Powdered sugar: Essential for a fluffy, smooth frosting that glides over the cake.
- Milk: Adjusts the frosting to that dreamy, spreadable consistency.
- Optional extras: Extra M&M’S Peanut Butter candies and chopped peanuts for the perfect finishing touch!
How to Make Butter Cake with Peanut Butter Frosting
Step 1: Prep Your Pan and Ingredients
Start by preheating your oven to 350°F. Grease and flour a 9×13-inch baking pan—this not only prevents sticking but also helps the cake bake evenly. Now’s the time to set out your butter and eggs, letting them come to room temperature for a silkier batter.
Step 2: Whisk the Dry Ingredients
In a medium bowl, whisk together flour, baking powder, baking soda, and salt. This quick step ensures the leaveners are evenly distributed, giving your cake a uniform rise and a perfectly tender crumb.
Step 3: Cream the Butter, Peanut Butter, and Sugars
In a large bowl, beat your softened butter and creamy peanut butter together until completely smooth and blended. Add both the granulated sugar and brown sugar, and beat until the mixture is light and fluffy—this is key to a soft, rich cake base.
Step 4: Add Eggs and Vanilla
One at a time, add the eggs, making sure to mix well after each addition. This step incorporates air and helps the texture stay pillowy. Finish by mixing in the vanilla extract for that classic warm undertone.
Step 5: Combine Wet and Dry Ingredients
Alternating between the flour mixture and the buttermilk, gradually add both to the wet batter, starting and ending with the dry ingredients. Mix until just combined—overmixing can toughen your cake, so a gentle hand is best!
Step 6: Fold in the M&M’S Peanut Butter Candies
This is when the magic happens! Gently fold in the M&M’S Peanut Butter candies, being careful not to overmix. You’ll love the pops of color and peanut buttery goodness as you slice into the cake.
Step 7: Bake to Golden Perfection
Spread the batter evenly into your prepared pan, smoothing the top for a uniform rise. Bake for 35–40 minutes. A toothpick inserted into the center should come out clean or with a few moist crumbs. Let the cake cool fully before frosting—trust me, it’s worth the wait!
Step 8: Prepare the Peanut Butter Frosting
Beat together the softened butter and peanut butter until creamy and lump-free. Slowly add the powdered sugar, followed by the vanilla and enough milk to reach a dreamy, spreadable consistency. This frosting is peanut butter heaven and honestly could double as a dip for cookies.
Step 9: Frost and Decorate
Once your cake is cool, slather the frosting generously over the top, using swirls or smooth strokes. If you want to take it over the top, shower the surface with extra M&M’S Peanut Butter candies and a sprinkle of chopped peanuts for crunch.
How to Serve Butter Cake with Peanut Butter Frosting

Garnishes
For a show-stopping finish, scatter more M&M’S Peanut Butter candies across the frosted cake, letting their playful colors steal the spotlight. Chopped roasted peanuts add an irresistible crunch, while a drizzle of warm chocolate sauce amps up the decadence. Don’t be shy—let your toppings reflect your mood or the occasion!
Side Dishes
This cake is a feast on its own, but pairing it with a tall glass of ice-cold milk is a nostalgic treat. For dessert lovers, a scoop of vanilla or chocolate ice cream alongside a slice transforms it into an all-out celebration. Feeling grown-up? A cup of strong coffee or a creamy latte complements the nutty sweetness brilliantly.
Creative Ways to Present
You can cut Butter Cake with Peanut Butter Frosting into big, hearty squares for a casual crowd, or slice it into slim, elegant rectangles for a more formal look. For kids’ parties, try cutting the cake into fun shapes with cookie cutters—instant smiles! Stack slices for a dramatic dessert tower or serve in individual cupcake liners for grab-and-go fun at your next gathering.
Make Ahead and Storage
Storing Leftovers
Cover any leftover Butter Cake with Peanut Butter Frosting tightly in the pan or transfer slices to an airtight container. It stays delightfully moist for up to 3 days at room temperature, so you can enjoy a treat all week long. If you prefer extra freshness, pop it in the fridge—it’ll last even longer without losing that irresistible texture.
Freezing
Got extra cake? You can freeze Butter Cake with Peanut Butter Frosting, either whole or in slices. Wrap pieces individually in plastic wrap, then tuck them into a freezer-safe bag or container. They’ll keep for up to three months! For best results, freeze the cake unfrosted and add the peanut butter frosting after thawing, but honestly, even fully frosted leftovers freeze beautifully in a pinch.
Reheating
To enjoy your cake warm, let it come to room temperature or zap individual slices in the microwave for about 10 seconds. This softens the frosting just enough to make it melt-in-your-mouth and brings back that just-baked aroma. Don’t overheat or the frosting might melt away completely!
FAQs
Can I use crunchy peanut butter instead of creamy?
Yes! Crunchy peanut butter adds extra texture and satisfies anyone who loves a bit of bite in their cake and frosting. Just know your finished Butter Cake with Peanut Butter Frosting will have tiny flecks of peanuts throughout for extra crunch.
What’s the best way to chop the M&M’S Peanut Butter candies?
For even distribution, place the candies in a zip-top bag and gently crush them with a rolling pin, or use a sharp knife for cleaner halves. Some candies may break more than others, but those colorful shards look gorgeous scattered across the top of the Butter Cake with Peanut Butter Frosting.
Can I make this recipe as cupcakes instead of a sheet cake?
Absolutely! Divide the batter evenly among lined muffin tins, filling each about two-thirds full. Bake at the same temperature for about 18–22 minutes, or until a toothpick comes out clean. Frost and decorate as you would with Butter Cake with Peanut Butter Frosting squares.
Is it okay to make the cake ahead and frost later?
Definitely. You can bake the cake a day or two in advance, let it cool, wrap it tightly, and refrigerate. When ready to serve, whip up your peanut butter frosting and spread it over the top. This actually makes Butter Cake with Peanut Butter Frosting even more convenient for parties.
Can I use regular M&M’S or another candy?
While M&M’S Peanut Butter candies are the classic choice for this recipe, regular M&M’S, peanut M&M’S, or another favorite chopped candy can be used for a fun twist. Each variation will bring a unique flavor and personality to your Butter Cake with Peanut Butter Frosting!
Final Thoughts
If you’re searching for your next crowd-pleasing dessert, it’s time to treat yourself and your loved ones to this Butter Cake with Peanut Butter Frosting. Every bite is loaded with color, comfort, and just the right touch of whimsy. Give it a try, and don’t be surprised when it becomes the most-requested cake at your next get-together!
Print
Butter Cake with Peanut Butter Frosting Recipe
- Total Time: 1 hour
- Yield: 12–16 servings 1x
- Diet: Vegetarian
Description
Indulge in the deliciousness of M&M’S Peanut Butter Cake with Peanut Butter Frosting. This moist and flavorful cake is studded with M&M’S Peanut Butter candies and topped with a creamy peanut butter frosting, making it a perfect treat for any occasion.
Ingredients
For the Cake:
- 2 cups all-purpose flour
- 2 teaspoons baking powder
- ½ teaspoon baking soda
- ½ teaspoon salt
- ½ cup unsalted butter (softened)
- ½ cup creamy peanut butter
- 1 cup granulated sugar
- ½ cup brown sugar (packed)
- 3 large eggs
- 1 teaspoon vanilla extract
- 1 cup buttermilk
- 1 cup M&M’S Peanut Butter candies
For the Peanut Butter Frosting:
- ½ cup unsalted butter (softened)
- ½ cup creamy peanut butter
- 2 cups powdered sugar
- 2–3 tablespoons milk
- 1 teaspoon vanilla extract
Optional Topping:
- ½ cup M&M’S Peanut Butter candies
- chopped peanuts (optional)
Instructions
- Preheat the oven and prepare the pan: Preheat the oven to 350°F. Grease and flour a 9×13-inch baking pan.
- Prepare the dry ingredients: In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.
- Mix the wet ingredients: In a large mixing bowl, beat the butter, peanut butter, granulated sugar, and brown sugar until light and creamy. Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract.
- Combine wet and dry ingredients: Gradually add the dry ingredients to the wet mixture, alternating with buttermilk, beginning and ending with the dry ingredients. Fold in the M&M’S Peanut Butter candies.
- Bake the cake: Pour the batter into the prepared pan and smooth the top. Bake for 35–40 minutes, or until a toothpick inserted into the center comes out clean.
- Make the frosting: Beat together the butter and peanut butter until smooth. Gradually add powdered sugar, then mix in the vanilla and enough milk to reach a spreadable consistency.
- Frost the cake: Frost the cooled cake evenly. Sprinkle additional M&M’S and chopped peanuts on top if desired.
Notes
- For a layered cake, divide batter between two 9-inch round pans and adjust baking time to 25–30 minutes.
- Store covered at room temperature for up to 3 days or refrigerate for longer freshness.
- Prep Time: 20 minutes
- Cook Time: 40 minutes
- Category: Dessert
- Method: Baking
- Cuisine: American
Nutrition
- Serving Size: 1 slice
- Calories: 430
- Sugar: 35g
- Sodium: 240mg
- Fat: 23g
- Saturated Fat: 9g
- Unsaturated Fat: 11g
- Trans Fat: 0g
- Carbohydrates: 52g
- Fiber: 2g
- Protein: 7g
- Cholesterol: 55mg