Today, I’m showing you how to whip up a ridiculously easy and delicious Caramel Iced Coffee using just a few basic ingredients — including my secret weapon: instant coffee, to create a fun twist on Dalgona. So, you’ll need no fancy equipment, no waiting for hot coffee to cool, and no $7 coffee shop tabs.

Plus, I love using instant coffee not just because it’s quick, but because it’s affordable too. A single jar of instant coffee costs less than one fancy latte and makes dozens of drinks. (Honestly, it feels like a life hack.) Add a drizzle of caramel, a splash of milk, and some ice, and you’ve got a coffeehouse-level drink at home — for a fraction of the price and a fraction of the effort. And, if you don’t have caramel syrup at home, I highly recommend trying my honey whipped coffee!

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Key Ingredients (And Why They Matter)

  • Instant Coffee: Instant coffee is the ultimate hack here. It dissolves quickly, gives you that rich coffee flavor without needing fancy brewing equipment, and still tastes amazing when chilled. Perfect for a quick fix! I personally love to use the Nescafe instant coffee.
  • Granulated Sugar: Mixing the sugar with hot water and coffee helps everything dissolve smoothly, giving you that sweet, syrupy base without any gritty bits.
  • Hot Water: Just a tablespoon is enough! It wakes up the instant coffee and sugar, helping them melt together into a strong, concentrated coffee shot.
  • Caramel Sauce: The star of the show. Use your favorite store-bought caramel sauce (or homemade if you’re feeling extra). You can adjust the amount depending on how sweet you want your coffee to be. I like a generous drizzle, obviously.
  • Milk: You can use any milk you like — regular, almond, oat, you name it. Milk makes the drink creamy and balances out the richness of the caramel and coffee.
  • Ice:Because this is iced coffee after all! The more ice, the colder and more refreshing.
top down view of caramel iced coffee

How to Make Caramel Iced Coffee

  1. In a small bowl (or your cup), mix instant coffee, sugar, and hot water until dissolved, and froth until fluffy.
  2. Add ice to your glass, and fill it up with milk.
  3. Drizzle caramel sauce generously on top and serve!
how to make caramel iced coffee

Why Instant Coffee?

I know what you’re thinking — instant coffee? Really? But hear me out: when you’re making an iced coffee, you don’t want to wait around for hot brewed coffee to cool down. Plus, because you’re dissolving it in just a tiny amount of hot water, you get a really concentrated coffee base that stands up to the milk, ice, and caramel without tasting watered down.

Another huge bonus? It’s super affordable. A jar of instant coffee costs way less than a daily coffee shop habit — and it lasts forever. You’re basically getting dozens of caramel iced coffees for the price of one latte. Budget-friendly and delicious? Sign me up. Basically, it’s a coffee hack that makes life way easier (and way cheaper) without giving up flavor.

And, if you’re looking for some other cozy coffeeshop drinks you can make at home, make sure to check out my iced matcha latte and golden milk recipes too!

instant coffee

FAQ

Can you use brewed coffee?

You can, but you’ll need to make sure it’s cooled first. Otherwise, the ice will melt too fast and water down your drink. Also, I would recommend brewing it really strong and then adding lots of milk if you want it to taste more like an iced latte!

How can I make this iced coffee taste like it’s straight from a coffee shop?

To make this coffee even fancier, add some whipped cream on top, a drizzle of caramel sauce over the whipped cream, and maybe even a sprinkle of sea salt if you’re feeling extra!

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Easy Caramel Iced Coffee Recipe (Using Instant Coffee!)

This homemade caramel iced coffee is sweet, creamy, and so easy to make! It’s ready in minutes with instant coffee, caramel sauce, milk, and ice — a refreshing treat you’ll want every day.
Servings: 1
Prep Time: 5 minutes
Cook Time: 0 minutes

Equipment

Ingredients 

  • 1 tbsp instant coffee
  • 1 tbsp granulated sugar
  • 1 tbsp hot water
  • 1-2 tbsp caramel sauce, or to taste
  • 1/2 cup of milk
  • Ice

Instructions 

  • Dissolve the coffee and sugar: In a small bowl, (or directly in your cup), stir together 1 tablespoon of instant coffee, 1 tablespoon of granulated sugar, and 1 tablespoon of hot water until fully dissolved.
  • Froth: Froth the coffee mixture until it turns light and fluffy, for 3-5 minutes.
  • Prepare the glass: Fill the glass with ice cubes. For extra flair, drizzle caramel sauce around the inside of the glass before adding the ice.
  • Add milk: Pour about ½ cup of your favorite milk over everything.
  • Add the caramel: Spoon 1-2 tablespoons of caramel sauce (or more if you love it extra sweet!) over the ice.
  • Combine: Stir everything well to combine, and enjoy!

Notes

(1) This ratio of instant coffee to milk is on the stronger side! If you want a less strong version, I would either reduce the instant coffee, sugar, and hot water to 2 tsps each instead of 1 tbsp; or, add 3/4 cups of milk instead of 1/2! 
(2) For an extra decadent version, top with whipped cream and a caramel drizzle.
(3) Adjust the caramel to taste depending on how sweet you like your coffee. TIP: you can drizzle your caramel on the inside of the glass before adding your coffee mixture, ice, and milk if you like it extra-caramel-y! 
(4) You can double or triple the recipe if you’re making it for a crowd (or if you need a bigger caffeine boost).

Nutrition

Calories: 180kcal, Carbohydrates: 33g, Protein: 5g, Fat: 4g, Saturated Fat: 2g, Polyunsaturated Fat: 0.1g, Monounsaturated Fat: 1g, Cholesterol: 15mg, Sodium: 117mg, Potassium: 373mg, Sugar: 29g, Vitamin A: 216IU, Vitamin C: 0.1mg, Calcium: 167mg, Iron: 0.2mg

Nutrition information is automatically calculated, so should only be used as an approximation.

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Shreya Walia

Hi, Iโ€™m Shreya Walia โ€” the recipe developer, content creator, and cookbook author behind Shreyaโ€™s Kitchen. As a lifelong vegetarian and the author of Make It Meatless (published through DK/Penguin Random House), Iโ€™ve spent over a decade developing recipes that make plant-based cooking bold, satisfying, and approachable. I share easy, crave-worthy meals with a community of over 1.3M food lovers on TikTok and Instagram. I believe food should be flavorful and fun โ€” never bland or boring."

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