Coffee Walnut Sponge Cake Recipe

Here in the southern states, cake isn’t just dessert. It’s practically a love language!

When I came across this Coffee Walnut Sponge Cake Recipe, I couldn’t help but think, “Now that’s a slice of heaven.”

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One sniff of that rich coffee smell and POW! the memories flood in faster than a double shot of espresso.

I love baking smells.

Today’s Coffee Walnut Sponge Cake recipe puts all that sweet comfort right in your own kitchen.

This sponge cake stays light yet moist, with a dash of instant espresso powder for true coffee flavor and a scattering of crunchy walnut pieces.

Spread on a thick coat of coffee buttercream and you’ve got a show‑stopper worthy of Sunday supper.

Or, let’s be honest, a random Tuesday night when the sweet tooth hits!

Unlike some of those grandmother classics (looking at you, pound cake) this batter uses both vegetable oil and unsalted butter so it never dries out.

I’m pretty sure Jeremy and I could live off of this stuff.

Ok, sure, maybe we’d be over-doing it on the sweets. I can dream, right?

There is HISTORY in this recipe, and we southerners do love our history.

Sure, this one came from the British, but it’s the flavor that counts, right? HA!

So, fire up the coffee pot and let’s bake a Coffee Walnut Sponge Cake recipe that’d make any Southern bakery proud!

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Jump to:

• WHY THIS RECIPE WORKS:
• INGREDIENTS NEEDED (SCROLL TO THE BOTTOM OF THIS POST FOR THE FULL RECIPE CARD):
• HOW TO MAKE COFFEE WALNUT SPONGE CAKE RECIPE:
• FAQ: FREQUENTLY ASKED QUESTIONS ABOUT THIS RECIPE:
• WHAT IS A SPONGE CAKE?
• WHAT KIND OF COFFEE SHOULD I USE?
• CAN THIS BE MADE AHEAD?
• ANY ADDITIONS?
• ANY SUBSTITUTIONS?
• HOW TO STORE:
• DANA’S TIPS AND TRICKS:
• Coffee Walnut Sponge Cake Recipe

1. Oil + butter = soft sponge
   The combo of melted fat from oil and flavor from butter keeps the crumb moist for days—no dry edges on the second cake or second time you sneak a slice.
2. Instant espresso powder gives punchy flavor
   Dissolved granules melt right into the batter and frosting, delivering full coffee flavor without watering down the sponge.
3. Chopped walnuts add texture and balance
   Nutty crunch breaks up the sweetness, and extra nuts on top of the cake give creamy good looks straight out of a British classic cookbook.

• Hot water
• Instant espresso powder or instant coffee granules
• Salted or unsalted butter, softened
• Vegetable oil
• Demerara or soft brown sugar
• Large eggs
• Self‑rising flour (or cake flour with baking powder)
• Vanilla extract
• Finely chopped walnuts
• Powdered sugar (g icing sugar)
• Extra walnut halves for garnish

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1. Preheat the oven to 350°F. Line and spray 2 8-inch cake pans with baking spray and set aside.
2. Whisk the water and espresso powder in a small bowl until dissolved; set aside.
3. Place the butter, oil, and sugar into the body of a stand mixer with the paddle attachment. Whip the mixture on medium speed for 5 minutes, scraping the sides as needed.
4. Add the eggs one at a time until fully mixed in.
5. Stir in the flour until no lumps are left, scraping the sides as needed.
6. Add the espresso mixture and vanilla and stir to combine.
7. Finally, stir in the walnuts.
8. Evenly distribute the batter between the two cake pans and smooth out the top.
9. Bake for 22-25 minutes until a toothpick inserted into the center comes out clean.
10. Let the cakes cool in the pan for 10 minutes, then take them out and let them cool completely on a wire rack.
11. Stir the hot water and espresso powder together in a small bowl until dissolved, set aside.
12. When the cakes are done cooling, make the frosting by placing the butter into a stand mixer with the paddle attachment, and whip until smooth.
13. Stir in the espresso mixture and vanilla.
14. Start adding the powdered sugar a little at a time until fully mixed in. 
15. Place on medium-high speed and whip for 3 minutes.
16. Take the paper off the cakes and cut the top off until flat, if needed.
17. Place one cake, top side down, onto a serving platter.
18. Add ⅓ of the frosting on top and smooth it out.
19. Place the other cake, top side down, on top.
20. With the remaining frosting, smear it on top and the sides of the cake.
21. Add chopped walnuts for garnish, if desired.
22. Allow to chill for 20 minutes in the fridge before serving.

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WHAT IS A SPONGE CAKE?

A sponge cake is a light, airy dessert that relies on whipped eggs (and, here, self‑rising flour) for lift.

It’s fluffy enough that kids tend to wonder how the heck you made it that way. That’s fun all by itself!

WHAT KIND OF COFFEE SHOULD I USE?

Use instant espresso powder or instant coffee powder stirred into hot water.

Brewed coffee is too weak, and coffee grounds will turn your batter gritty—nobody wants crunchy caffeine.

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CAN THIS BE MADE AHEAD?

Yes! Cool layers completely, wrap in plastic, and keep at room temperature for 24 hours—or freeze for a month.

Frosted cake stores in an airtight container in the fridge up to three days.

Coffee flavor gets even better overnight.

ANY ADDITIONS?

With cake, there are always things you can add! Get started with this list. If your taste buds speak to you, follow their lead.

• Mini chocolate chips for mocha vibes
• A drizzle of coffee liqueur on each sponge before frosting
• Shaved dark chocolate on the frosting
• Pinch of cinnamon or cardamom in batter
• Swap walnuts on top for hazelnuts or pecans
• Thin layer of dulce de leche between layers
• Splash of almond milk in buttercream for lighter texture
• Dusting of cocoa powder over smooth icing
• Spoonful of espresso syrup painted on the cut side of each layer
• Edible gold dust for party sparkle

ANY SUBSTITUTIONS?

I’ve got a few ideas for ya. If you have any others, be sure to let me know in the comments!

• Plain flour + 2 tsp baking powder in place of self‑rising
• Decaf espresso for late‑night baking
• Gluten‑free 1:1 free flour blend for wheat‑free friends
• Vegan cake version: plant‑based butter and flax “eggs” (1 Tbsp flax + 3 Tbsp water each)
• Honey or maple syrup for part of the sugar to use less sugar
• Greek yogurt for half the butter in frosting to cut richness

ROOM TEMPERATURE: Keep covered up to 24 hours (cool kitchens only).

REFRIGERATOR: Place in an airtight container up to 3 days. Bring to room temp—nobody likes cold butter cake.

FREEZER: Wrap unfrosted layers tightly and freeze up to 1 month.

Thaw on the right side (flat) at room temp before assembling.

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Coffee Walnut Sponge Cake Recipe is a personal favourite of home bakers everywhere: easy, impressive, and bursting with coffee flavor for us serious coffee lovers.

Next time your afternoon slump hits, skip the slice of cake at the café, whip up this delicious recipe, and enjoy a bakery‑worthy treat in the comfort of your own kitchen—pajamas optional, extra espresso encouraged.

Learn more about the author, Dana DeVolk, on our ABOUT ME page!