Butterscotch Drops

I still remember the first time I made Butterscotch Drops—it was a chilly December afternoon, and the smell of warm brown sugar and melted butterscotch chips instantly made my kitchen feel like a cozy candy shop. What I love most about this recipe is how incredibly simple it is, yet it never fails to impress. The glossy, golden coating hugging clusters of peanuts and marshmallows is downright addictive, and the crunch followed by creamy sweetness is an unbeatable combo.

This is the kind of recipe that requires no oven, no candy thermometer, and absolutely no stress. Whether you're prepping treats for a holiday platter, wrapping goodies for gifting, or just need a sweet fix to enjoy with a cup of coffee, Butterscotch Drops hit the mark every time. They store beautifully and come together in a matter of minutes, which is perfect for those spontaneous dessert cravings.

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Why You’ll Love This Butterscotch Drops Recipe

Butterscotch Drops check all the right boxes—sweet, crunchy, creamy, and downright nostalgic. They’re incredibly easy to make, with only a few ingredients and minimal effort. No baking needed! Perfect for beginner cooks, quick holiday treats, or last-minute potlucks. Plus, the flavor combo of butterscotch, peanut butter, and mini marshmallows is the kind of thing you didn’t know you were missing until you’ve had one… then two… then five.

What Kind of Peanut Butter Works Best in Butterscotch Drops?

Creamy peanut butter is your best friend here. It melts beautifully and blends smoothly with the butterscotch chips to create that luscious coating. I’ve tried using crunchy peanut butter before, and while it does add extra texture, it can interfere with the silky consistency that makes these drops so irresistible. Stick with creamy for best results, but if you love a bit of a bite, mix in some chopped peanuts instead.

Avoid natural peanut butters that separate, as they can cause the mixture to seize or turn grainy when combined with the warm butterscotch. A shelf-stable, no-stir variety gives you that ideal consistency every time.

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Options for Substitutions

One of the best parts of this recipe is how customizable it is. You can easily tailor it to your pantry or dietary needs:

• Mini marshmallows: Swap for chopped large marshmallows or even freeze-dried ones for an airy crunch.
• Peanuts: Not a fan or allergic? Try cashews, almonds, or sunflower seeds instead.
• Butterscotch chips: White chocolate or peanut butter chips make great alternatives, or mix them half-and-half with butterscotch for a layered flavor.
• Peanut butter: Almond butter or sunflower seed butter can be used for a nut-free version.
• Add-ins: Try tossing in some crushed pretzels, cereal (like Rice Krispies), or even toffee bits for an extra flavor twist.

This is one of those recipes that invites a little creativity—just keep the ratios balanced so everything gets nicely coated and holds together once set.

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Ingredients for This Butterscotch Drops Recipe

Every ingredient in this recipe plays a key role in delivering that perfect sweet-and-salty crunch. Here’s what you’ll need and why it matters:

• Butterscotch chips – These are the star of the show. They melt down into a rich, sweet coating with that classic buttery caramel-like flavor that makes butterscotch drops so addictive.
• Creamy peanut butter – This adds richness and helps create a smooth texture that binds the ingredients together. It also balances the sweetness with a little nuttiness.
• Mini marshmallows – They give the drops their signature chewy pockets of sweetness and a light, pillowy contrast to the crunch.
• Salted peanuts – The saltiness is essential to balance out the sugary elements. Plus, they add that satisfying crunch in every bite.

That’s it—just four ingredients, but together they create something magical.

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Step 1: Melt the Butterscotch Chips

In a medium saucepan over low heat (or in a microwave-safe bowl), gently melt the butterscotch chips. Stir frequently to prevent scorching. If you're using a microwave, heat in 20-second intervals, stirring each time, until fully melted and smooth.

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Step 2: Stir in the Peanut Butter

Once the chips are fully melted and silky, remove from heat and immediately stir in the creamy peanut butter. Mix until the two are completely combined and the texture is glossy and smooth.

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Step 3: Fold in the Peanuts and Marshmallows

Quickly—but gently—fold in the salted peanuts and mini marshmallows. Work quickly so the marshmallows don’t melt completely; you want them to hold their shape for that soft bite inside the clusters.

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Step 4: Drop Onto Parchment

Line a baking sheet or countertop with parchment or wax paper. Using a spoon or small cookie scoop, drop spoonfuls of the mixture onto the paper, spacing them slightly apart. Try to work before the mixture begins to firm up.

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Step 5: Let Them Set

Allow the drops to cool and harden at room temperature for about 30–45 minutes. If you're in a hurry, pop the tray in the fridge and they’ll set in about 15 minutes.

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How Long to Cook the Butterscotch Drops

Technically, there’s no actual cooking involved—just gentle melting and mixing. Here's a quick timing breakdown:

• Melting the butterscotch chips: 2–3 minutes (microwave) or 5–7 minutes (stovetop).
• Mixing everything together: About 2 minutes.
• Setting time: 30–45 minutes at room temperature, or 15 minutes in the fridge if you're impatient.

So in under an hour (most of which is hands-off), you’ll have a tray full of sweet, golden bites ready to enjoy.

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Tips for Perfect Butterscotch Drops

• Use fresh marshmallows: Stale marshmallows won’t hold their shape and can become overly sticky.
• Avoid overheating the chips: Low and slow is key—if the butterscotch burns, there’s no saving it.
• Line your tray first: Parchment or wax paper makes cleanup a breeze and prevents sticking.
• Work quickly when combining: Once the mixture cools, it starts to harden fast. Have your peanuts and marshmallows pre-measured and ready.
• Scoop evenly: Use a small cookie scoop for uniform-sized clusters that look great on a platter or in gift bags.

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Watch Out for These Mistakes While Cooking

Even though Butterscotch Drops are a no-bake, beginner-friendly treat, a few small missteps can throw things off. Keep these in mind for perfect results:

• Overheating the butterscotch chips – This is the number one mistake. If overheated, they can seize or become grainy. Always melt slowly and stir frequently.
• Using natural peanut butter – The oil separation in natural types can ruin the smooth texture of your mixture. Stick with no-stir, creamy varieties.
• Adding ingredients too late – The mixture sets quickly. If you wait too long to fold in the peanuts and marshmallows, the coating may become too thick to mix.
• Skipping the parchment paper – Don’t place the drops directly on a plate or tray without lining it first. They’ll stick and be hard to remove cleanly.
• Not measuring properly – Too many marshmallows or peanuts can throw off the ratio, leaving some pieces uncoated and dry.

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What to Serve With Butterscotch Drops?

These little sweet clusters are versatile and play nicely with a wide variety of other treats and drinks. Here are a few delicious pairing ideas:

Hot Chocolate or Mocha

A warm drink balances the cool, chewy texture of the drops, and enhances the sweet-and-salty flavor.

Salted Pretzel Rods

Pair with pretzels for a crunchy, salty snack combo that complements the sweet richness of the drops.

Coffee or Espresso

The nutty, caramel-like flavor of butterscotch drops pairs beautifully with a strong cup of coffee.

Cheese Platter

Believe it or not, a mild cheese board can be a surprising match—think creamy brie or sharp cheddar with a side of drops for contrast.

Vanilla Ice Cream

Crumble a few drops over ice cream for a quick, decadent dessert.

Fresh Berries

A bowl of strawberries or raspberries adds a tart and juicy contrast to the creamy sweetness of the drops.

Caramel Popcorn

Pair with caramel popcorn for a sweet snack spread that’s perfect for movie nights or parties.

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Storage Instructions

Butterscotch Drops are a dream when it comes to storage. Once they’ve fully set, transfer them to an airtight container. They can be kept:

• At room temperature for up to 1 week, in a cool, dry spot away from direct sunlight.
• In the fridge for up to 2 weeks, if you prefer a firmer texture.
• In the freezer for up to 2 months—just place parchment between layers to prevent sticking. Thaw at room temperature for 10–15 minutes before serving.

Make sure the container is tightly sealed to avoid moisture getting in, which can make the drops sticky or soft.

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Estimated Nutrition (per drop, approx. 1-inch diameter)

Note: Values will vary slightly depending on exact ingredient brands and scoop size.

• Calories: 130
• Total Fat: 8g
• Saturated Fat: 3g
• Cholesterol: 0mg
• Sodium: 80mg
• Carbohydrates: 14g
• Sugar: 11g
• Fiber: 1g
• Protein: 2g

These treats are indulgent, for sure—but they also pack a little protein and are portion-friendly, so they’re easy to enjoy in moderation.

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Frequently Asked Questions

What if my butterscotch chips won’t melt smoothly?

If they’re not melting properly, the heat might be too high or too fast. Lower the heat, stir constantly, and consider adding a tiny bit of neutral oil (like canola) to help smooth them out if needed.

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Can I make these without marshmallows?

Yes! You can replace the marshmallows with cereal (like cornflakes or Rice Krispies), dried fruit, or just add more nuts. The texture will be different but still delicious.

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Are Butterscotch Drops gluten-free?

They can be! All of the base ingredients are typically gluten-free, but always check labels—especially on the butterscotch chips and peanut butter—to ensure they weren’t processed with gluten.

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Can I use almond butter instead of peanut butter?

Absolutely. Almond butter works well as a substitute, especially if you're avoiding peanuts. Just make sure it’s a smooth, no-stir type.

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Can I make these drops vegan?

You can get close. Use dairy-free butterscotch chips (some brands offer them), vegan marshmallows, and a plant-based nut butter. The result will be slightly different, but still tasty.

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How long do they take to set completely?

At room temperature, they typically set within 30–45 minutes. If you're in a rush, pop them in the fridge and they’ll firm up in 15–20 minutes.

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Why are my drops too soft or sticky?

This usually happens if the butterscotch didn’t fully melt or if the room is too warm. Refrigerating them for a bit should help. Also make sure your ingredient ratios are correct.

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Can I double the recipe?

Definitely! Just be sure to mix quickly after combining the melted mixture with the add-ins so everything gets coated before it starts to set. Use a larger bowl and prep extra trays for dropping.

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Conclusion

Butterscotch Drops are the kind of recipe that reminds you how joyfully simple homemade sweets can be. No baking, no special equipment—just a few pantry staples and a few minutes of your time. Whether you’re making them for the holidays, gifting them in cookie tins, or sneaking one as a midnight treat, these golden little clusters always hit the spot. Once you make a batch, don’t be surprised if they become your new go-to sweet treat.

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