Danish Dream Cake (Drømmekage)

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Danish Dream Cake (Drømmekage) is an absolute crowd-pleaser and one of Denmark’s all-time favorite desserts! Made with a light and tender sponge cake and topped with a decadent caramel coconut layer that adds a delightful crunch. Whether you’re celebrating a special occasion or just treating yourself after a long day, Danish Dream Cake is the perfect sweet treat!

Closeup of a square of Danish dream cake on a plate with a fork.

History of Danish Dream Cake (Drømmekage)

The history of the dream cake is relatively new when compared to most traditional dishes. It goes back to the 1960s, when a 13-year-old girl named Jytte Andersen found her grandmother’s treasured recipe and decided to enter it into a cooking competition.

But it wasn’t until later, while flipping through a cookbook by a Danish company called Amo, that Andersen discovered her grandmother’s recipe printed inside. The cake had caught the attention of Amo’s representative at the competition and the rep added it to the cookbook without consent from Jytte. She was never even compensated for what’s now one of the most beloved desserts of Denmark!

Ingredients & Substitutions

All-purpose flour: The base of the cake.
Baking powder: A leavening agent that helps the cake to rise and makes the cake light and fluffy.
Unsalted butter: I use unsalted butter when baking. Different brands of butter use varying amounts of salt in salted butter. Using unsalted butter will help give uniform results when baking. If you’re using salted butter, reduce or eliminate any additional salt.
Whole milk: Adds more fat which in turn makes a richer tasting cake.
Sugars: The white sugar is for the cake and the brown sugar is for the coconut caramel topping.
Eggs: I used large eggs.
Unsweetened coconut flakes: This recipe is plenty sweet so there’s no need to add more sugar with sweetened coconut flakes.
Vanilla: Enhances other flavors and adds a warm background note.
Salt: A flavor enhancer. Leave it out if you’re using salted butter.

How to Make Danish Dream Cake

Milk and melted butter in a measuring cup.

Preheat the oven to 350°F.
Line a 9 x 9-inch square baking pan with parchment paper.
Place the butter and milk in a small saucepan or a microwave safe dish (I prefer to do this in the microwave because it’s quicker and easier to clean up) and heat it until the butter has melted. Set it aside to cool a bit. (You don’t want to add hot liquid to the egg and sugar mixture because if it’s too hot, it will cook the eggs. You don’t want a scrambled egg cake!)
In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

Eggs, sugar and vanilla in large mixing bowl.

Eggs, sugar and vanilla mixed together in a large mixing bowl.

Add the eggs, sugar and vanilla to a large mixing bowl.
Using a hand mixer or the whisk attachment of a stand mixer, whisk the eggs, granulated sugar and vanilla on a high speed until it’s fluffy and lighter in color. This takes about 5-8 minutes.

Adding flour to the egg and sugar mixture in a bowl.

Folding the flour into the egg and sugar mixture in a bowl with a rubber spatula.

Gently fold in half of the flour mixture into the egg mixture. Folding helps incorporate the dry ingredients without removing the air that was whipped into the egg mixture.
Next, gently fold in half of the milk mixture. Repeat this process, alternating between the remaining flour mixture and milk mixture, ending with the remaining egg mixture.

Pour the batter into your prepared baking pan and bake until a toothpick inserted into the center of the cake comes out clean, about 20-25 minutes.
Remove the cake from the oven and increase the heat to 400°F.

Cake with coconut caramel topping in a baking pan.

Now it’s time to prepare the topping! Start making the topping about 10 minutes before the cake is ready to come out. In a medium saucepan over medium-high heat, combine the butter, sugar, and milk. Stir until the butter has melted and the sugar has dissolved.
Turn the heat up to high and bring to a boil. Let it boil for 1 minute.
Remove the pan from the heat, then add the coconut and mix it well until the coconut is completely coated.
Return it back to the heat for about a minute to heat it through.
Pour the topping evenly over the top of the cake, using a rubber spatula or the back of a spoon to smooth it out.
Return it to the oven and bake for another 5-10 minutes, until the topping is bubbling and the coconut begins to toast.
Remove it from the oven and let it cool before serving.

Overhead shot of 3 squares of Danish dream cake each on a plate with a fork.

Expert Tips

Beat the eggs and sugar to the ribbon stage: In baking, the ribbon stage is when the eggs and sugar are mixed together until the mixture becomes pale and thick, As the whisk, or beaters, is lifted out of the bowl, the mixture should slowly fall back into the bowl in ribbons that hold their shape momentarily before sinking back in. When you reach the ribbon stage, it means you’ve incorporated enough air into the mixture, giving your final baked good a light and fluffy texture.
Gently fold in the flour: After beating the eggs and sugar to the ribbon stage, gently folding in the flour is necessary to maintain the airiness of the mixture. By folding instead of stirring vigorously, you ensure that the dry ingredients are incorporated without deflating the air bubbles created during the whisking process. This gentle folding technique helps to preserve the light and fluffy texture in the final baked goods.

FAQs

How to store Danish dream cake?

Danish dream cake can be stored in an air-tight container at room temperature for 2-3 days.

Can I freeze Danish Dream Cake?

Yes, Danish dream cake can be frozen. To do so, you can either tightly wrap the entire cake in plastic wrap or wrap individual pieces in plastic wrap before placing them in a freezer-safe container. When properly stored, the cake can stay frozen for up to two months.

Can I use sweetened shredded coconut for the topping?

Yes, you can use sweetened shredded coconut for the topping. However, be aware that it may make the cake slightly sweeter.

Can I use a different size baking pan?

Yes, you can use a different size baking pan. However, keep in mind that the baking time may vary. I’ve used an 8×8-inch and the cake just fit, however I had to bake it for a bit longer, about 25-30 minutes.

Can I add nuts to the topping?

Yes, you can add chopped nuts, such as pecans or almonds, to the topping for added texture.

More Recipes You’ll Love

Danish Dream Cake (Drømmekage)

Made with a light and tender sponge cake and topped with a decadent caramel coconut layer that adds a delightful crunch.

5 from 1 vote

Print Recipe Pin Recipe

Prep Time 25

Cook Time 25

Total Time 50

Servings

Ingredients

For the cake:

1½ cups all-purpose flour
2 tsp baking powder
½ tsp salt
3 large eggs
1 cup white sugar
1 tsp vanilla
¾ cup whole milk
4 Tbsp unsalted butter

For the topping:

½ cup unsalted butter (1 stick)
1 cup white sugar
¼ cup whole milk
1¼ cup unsweetened shredded or desiccated coconut

Instructions

To make the cake:

Preheat the oven to 350°F.
Line a 9 x 9-inch square baking pan with parchment paper.
Place butter and milk in a small saucepan or a microwave safe dish and heat until the butter has melted.
Heat butter and milk mixture slowly over low heat until the butter is melted. Set aside to cool a bit.
In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.
Add eggs, sugar and vanilla to a large mixing bowl.
Using a hand mixer or the whisk attachment of a stand mixer, whisk eggs, granulated sugar and vanilla on a high speed until fluffy and lighter in color, about 5-8 minutes.
Gently fold in half of the flour mixture into the egg mixture.
Next, gently fold in half of the milk mixture. Repeat this process, alternating between the remaining flour mixture and milk mixture, ending with the remaining egg mixture.
Pour batter into prepared baking pan and bake until a toothpick inserted into the center of the cake comes out clean, about 20-25 minutes.
Remove the cake from the oven and increase the heat to 400°F.

To make the topping:

Start preparing the toping about 10 minutes before the cake is ready to come out: In a medium saucepan over medium-high heat, combine the butter, sugar, and milk. Stir until the butter has melted and the sugar has dissolved.
Turn the heat up to high and bring to a boil. Let it boil for 1 minute.
Remove the pan from the heat, then add the coconut and mix it well until the coconut is completely coated.
Return it back to the heat for about a minute to heat it through.

Bring it all together:

Pour the topping evenly over the top of the cake, using a rubber spatula or the back of a spoon to smooth it out.
Return to the oven and bake for another 5-10 minutes, until the topping is bubbling and the coconut begins to toast.
Remove from the oven and let cool before serving.

Notes

Beat the eggs and sugar to the ribbon stage: In baking, the ribbon stage is when the eggs and sugar are mixed together until the mixture becomes pale and thick, As the whisk, or beaters, is lifted out of the bowl, the mixture should slowly fall back into the bowl in ribbons that hold their shape momentarily before sinking back in.

Gently fold in the flour: After beating the eggs and sugar to the ribbon stage, gently folding in the flour is necessary to maintain the airiness of the mixture. By folding instead of stirring vigorously, you ensure that the dry ingredients are incorporated without deflating the air bubbles created during the whisking process.

To store: Danish dream cake can be stored in an air-tight container at room temperature for 2-3 days.