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Rainbow Chip Frosting

Move over Betty Crocker, this homemade rainbow chip frosting recipe will be a new frosting favorite! The frosting is made with a creamy vanilla cream cheese buttercream with colorful white chocolate rainbow chips. Use this delicious frosting to make the best birthday cakes and cupcakes.

Ingredients for Rainbow Chip Frosting

  • White chocolate – You can either use white chocolate chips or white almond bark.
  • Gel food coloring – I love Americolor gel color. I don’t recommend using liquid color for this recipe.
  • Unsalted butter – Room temperature.
  • Cream cheese – Room temperature.
  • Powdered sugar – Confectioners’ sugar/icing sugar.
  • Vanilla extract – Pure vanilla extract for the best vanilla flavor.
  • Salt – A pinch of salt helps contrast the sweetness of the frosting.
  • Heavy cream – Helps make the frosting smooth and creamy.
cupcakes with rainbow chip frosting

How to Make Rainbow Chip Frosting

  1. Melt the white chocolate: Pour the white chocolate chips in a microwave-safe bowl. Heat the white chocolate in 15 second intervals, mixing in between each interval, until the chocolate is fully melted.
  2. Color the white chocolate: Divide the white chocolate into 4 small bowls. Add in 1 drop of gel food coloring to each bowl and stir well. Note: If the chocolate seizes up, just add a couple drops of vegetable oil and stir until the chocolate is smooth.
  3. Spread & chill the colored chocolate: Spread the colored chocolates into thin, rectangular shapes on a baking pan lined with a parchment paper sheet. Refrigerate for 15 minutes.
  4. Make the rainbow chips: Remove the white chocolate from the refrigerator. Cut the chocolate into tiny pieces and set aside.
  5. Make the frosting: Whip the butter for about 5 minutes until it is light, pale, and creamy. Add in the cream cheese and mix until smooth. Add in the powdered sugar in two batches, mixing on low speed in between each addition until well combined. Add in the vanilla extract and salt, and mix well. Drizzle in the heavy cream. Scrape the sides and bottom of the bowl. Turn the mixer to medium speed and mix the frosting for 3 to 5 minutes until it is smooth and creamy. Fold in the rainbow chips.
cupcakes with rainbow chip frosting

Recipe Tips

  • If you want to make the frosting ahead of time, I recommend waiting to fold in the rainbow chips until before you use it to prevent rainbow chips from breaking down.
  • Use gel food coloring to tint the white chocolate. Liquid food coloring can cause the chocolate to seize. Gel color is highly pigmented, so it will give the rainbow chips great color without impacting the texture.
  • This is a difficult frosting to pipe due to the colorful chips. If you want to pipe it, I recommend using a large round piping tip.

Frequently Asked Questions

How should I store the rainbow chip frosting?
  • If you want to make the frosting ahead of time, I recommend keeping the frosting and the rainbow chips separate.
  • Store the frosting in an airtight container in the refrigerator for 2 weeks. To use, bring the frosting to room temperature and rewhip until it is smooth and creamy. Then, fold in the rainbow chips.
What should I do if the white chocolate seizes after I add the gel food coloring?
  • Don’t worry! Simply add a couple drops of vegetable oil to the chocolate and stir until it is smooth.
How much frosting does this recipe make?
  • One batch of this frosting is enough to frost a 3-layer 7-inch round or 8-inch round layer cake or 2 to 3 dozen cupcakes depending upon how much frosting you use.
What cake or cupcake flavors would this frosting pair well with?
Can I use liquid food coloring instead of gel food coloring?
  • I don’t recommend using liquid food coloring. It can cause the melted white chocolate to seize. Go with gel food coloring for the best and brightest color.
funfetti cake with rainbow chip frosting

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Rainbow Chip Frosting

Prep Time 30 minutes
Chill Time 15 minutes
Yield: 6 cups
This homemade rainbow chip frosting recipe will be a new frosting favorite! The frosting is made with a creamy vanilla cream cheese buttercream with colorful white chocolate rainbow chips. Use this delicious frosting to make the best birthday cakes and cupcakes.

Equipment

  • Stand mixer fitted with a paddle attachment or electric hand mixer

Ingredients 

  • 1 โ…“ cups (240 g) white chocolate chips (9 oz)
  • 1 drop (1 drop) gel food coloring 4 colors
  • 2 cups (454 g) unsalted butter room temperature
  • 4 oz (113 g) cream cheese room temperature
  • 5 cups (600 g) powdered sugar
  • 3 tsp (3 tsp) vanilla extract
  • ยฝ tsp (0.5 tsp) salt
  • ยผ cup (60 ml) heavy cream

Instructions

Rainbow Chips

  • Pour the white chocolate chips in a microwave-safe bowl. Heat the white chocolate in 15 second intervals, mixing in between each interval, until the chocolate is fully melted.
  • Divide the white chocolate into 4 small bowls. Add in 1 drop of gel food coloring to each bowl and stir well. Note: If the chocolate seizes after you add the gel food coloring, add a few drops of vegetable oil and stir until it is smooth.
  • Spread the colored chocolates into thin, rectangular shapes on a baking pan lined with a parchment paper sheet. Refrigerate for 15 minutes.
  • Remove the white chocolate from the refrigerator and peel the solidified chocolate off the parchment paper or baking mat. Cut the chocolate into tiny pieces. Set aside.

Rainbow Chip Frosting

  • In the bowl of a stand mixer fitted with a paddle attachment or in a large mixing bowl with an electric hand mixer, cream the unsalted butter for about 5 minutes until light, pale, and fluffy.ย Add in the softened cream cheese and continue to mix until the mixture is smooth.
  • Add in the powdered sugar in two batches and mix on low speed after each addition until the powdered sugar is well combined with the butter. Add in the vanilla extract and salt and mix on low speed until smooth.
  • Drizzle in the heavy cream.ย Turn the mixer to medium speed and whip the frosting for 3 to 5 minutes until it is smooth and creamy. Fold the rainbow chips into the frosting.

Notes

  • If you want to make the frosting ahead of time, store the rainbow chips separately from the frosting.
  • Store the frosting in an airtight container in the refrigerator for about 1 week. To use, bring the frosting to room temperature and rewhip until it is smooth and then fold in the rainbow chips.
Metric conversions are calculated automatically. I cannot guarantee the accuracy of this information.

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About Courtney

Baker | 80s Lover | Cookbook Author

Courtney is a self-taught home baker and cookbook author of “Girls Just Wanna Bake Cupcakes”. She loves to create new and unique recipes while simultaneously listening to 80s music.

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