Margarita Cake with Key Lime Cream Cheese Frosting Recipe

This Margarita Cake combines a fluffy lime-infused cake with a tangy Key lime cream cheese frosting, offering a balance of sweetness and citrusy zing. It’s the ideal cake for anyone who loves the vibrant flavors of a margarita in dessert form.
Margarita Cake with Key Lime Cream Cheese Frosting
I love making this cake because it’s a fun twist on a classic margarita cocktail, with all the fresh flavors of lime and citrus. The cream cheese frosting is extra creamy and adds a perfect tang to balance the sweetness of the cake. It’s a crowd-pleaser that’s beautiful and delicious!
Serve this cake with Fresh Berry Compote Recipe or enjoy with Lemonade Sorbet Recipe for a refreshing dessert combination.

Why You’ll Love This Margarita Cake Recipe
- Zesty and Bright: Bursting with lime flavor in both the cake and frosting.
- Perfect for Celebrations: A unique and fun dessert for gatherings.
- Fluffy Texture: Light, moist cake with a creamy, tangy frosting.
- Simple Ingredients: Basic ingredients come together for a stunning cake.
Main Ingredients for Margarita Cake
- All-Purpose Flour – Provides structure and softness to the cake.
- Lime Zest and Juice – Adds that key margarita flavor in each bite.
- Butter and Sugar – The cake’s base, creating a rich and fluffy texture.
- Cream Cheese – Essential for the tangy Key lime frosting.
- Confectioners’ Sugar – Sweetens and smooths the frosting.
Step-by-Step Instructions for Margarita Cake Recipe
Here’s how to make this delightful lime-infused cake step by step:
- Preheat the Oven: Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
- Tip: Line the bottoms with parchment paper for easy release.
- Prepare the Dry Ingredients: In a medium bowl, whisk together 2 1/4 cups of flour, 1 tablespoon of baking powder, and a pinch of salt.
- Serving Idea: A dash of lime zest in the flour mixture enhances the citrus flavor.
- Mix the Wet Ingredients: In a large bowl, cream 1 cup of softened butter and 1 1/2 cups of sugar until light and fluffy. Beat in 4 large eggs one at a time, followed by the zest and juice of 2 limes.
- Optional: Add a teaspoon of vanilla extract for added depth of flavor.
- Combine Ingredients and Bake: Gradually mix the dry ingredients into the wet mixture, alternating with 1 cup of milk. Pour the batter evenly into the prepared cake pans and smooth the tops.
- Pro Tip: Tap the pans on the counter to remove any air bubbles for an even texture.
- Bake the Cake Layers: Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean. Let the cakes cool in the pans for 10 minutes, then turn them out onto wire racks to cool completely.
- Serving Idea: Brush each layer with a bit of lime syrup (lime juice and sugar) for extra moisture.
- Prepare the Key Lime Cream Cheese Frosting: In a medium bowl, beat 8 ounces of softened cream cheese, 1/2 cup softened butter, and the zest and juice of 1-2 Key limes until smooth. Gradually add 3 cups of confectioners’ sugar until the frosting is creamy and spreadable.
- Optional: For extra lime flavor, add a splash of lime juice or zest.
- Assemble the Cake: Place one cake layer on a serving plate, spread with a layer of frosting, then top with the second layer. Frost the top and sides, creating a smooth finish.
- Optional Topping: Decorate with thin lime slices or extra zest on top for a fresh look.
- Serve and Enjoy: Slice and serve this zesty margarita cake. Store leftovers in the fridge to keep the frosting firm.
- Optional Garnish: Sprinkle with coarse sugar or a dash of sea salt for a margarita-inspired finish.
Extra Tips and Variations
- Make it Boozy: Add a tablespoon of tequila to the cake batter for an authentic margarita flavor.
- Use Different Citrus: Try lemon or orange for a unique citrus twist.
- How to Store: Store in the fridge for up to 3 days.
- Serving Suggestion: Serve with fresh berries for added color and flavor.
Health Benefits of Margarita Cake with Key Lime Cream Cheese Frosting
Though indulgent, this cake offers a fun way to enjoy lime, which is rich in vitamin C, antioxidants, and a fresh taste that pairs well with sweet ingredients.
- Source of Vitamin C: Lime zest and juice add antioxidants and vitamin C.
- Adaptable for Dietary Needs: Can be made gluten-free with suitable flour.
- Balanced Sweetness: Cream cheese frosting balances out sweetness for a satisfying bite.