Coconut Toffee Bars – Easy Christmas Dessert Bar Recipe with Toffee Bits

You’re looking at a dessert bar that makes its way into my Christmas tins every year. These Coconut Toffee Bars combine toasted coconut, crunchy toffee bits, and a soft peanut butter butterscotch topping that sets with a rich shine.

You’ll learn how to layer texture, how each ingredient builds flavor, and how to keep the bars crisp yet chewy. There’s no fluff here. Just solid guidance and grounded notes from experience. If you’ve browsed coconut recipes before and found them too sweet or too sticky, this one balances the line better than most.

This recipe stands out because it brings three very different layers into harmony. Not just stacked. Properly balanced. Each one has a job. Together, they make this one of my most asked-for Christmas dessert bars.

A Crust That Starts Off Strong

The crust begins with graham cracker crumbs and melted butter, which is nothing new. But what makes this base more than a formality is the addition of brown sugar and sweetened coconut. Brown sugar holds the crumbs tighter. Coconut adds chew. The result bakes up sturdy and golden.

I’ve found over time that pressing this crust firmly especially at the corners helps it hold up once sliced. Loose crumbs underneath a layered bar cause problems. I use the bottom of a metal measuring cup and press until I hear the slight crunch of packed sugar.

If you’re curious how this crust compares to one made with digestive biscuits or plain flour, I’ve tried both. Graham crackers bring a toasted note that blends best with the coconut topping. Digestives run too mild and flour-based crusts often go soft.

Related recipe you might also like: Christmas Cracker Toffee

Sweetened Condensed Milk: A Shortcut that Works

The coconut layer relies on sweetened condensed milk. It’s what gives the bars structure and richness without needing eggs or extra sugar. The milk caramelizes just slightly at the edges, giving you those golden corners everyone wants.

I use a full can. No stretching. No substitutions. Sweetened condensed milk is thick and precise. Don’t use evaporated milk here—they’re not interchangeable.

Vanilla extract deepens the profile and a pinch of salt pulls it back from being cloying. I once skipped the salt and regretted it. Just that pinch is enough to round things out.

And if you’re in the mood for another bar to contrast textures: Christmas Sugar Cookie Bars

The Topping That Seals It All

Butterscotch chips melt with creamy peanut butter and a bit of butter to form the warm base of the topping. The mixture stays soft and glossy for only a short window, so you’ll need to pour and spread it quickly.

Toffee bits and chopped roasted peanuts go in after melting. I’ve used both Heath and homemade toffee bits. Honestly, for this recipe, the store-bought bits perform better. They’re more consistent in size, and that matters when you want clean layers.

As for the nuts, roasted peanuts give it that nostalgic flavor. Cashews work too, especially if you want something milder. I wouldn’t go with walnuts here—they overtake the butterscotch.

Want something similarly rich, but with a softer center? Try the Christmas Cherry Bars.

Graham Cracker vs. Digestive Crust: Which Holds Better?

In my tests, graham crackers give you a drier, more structured bottom layer. Digestives hold more moisture and can turn a little soft on the second day. If you’re storing these for a party platter, go graham. If you’re making them for same-day serving, digestive might work. But in my notes, graham is always the default.

Cool Before Cutting: The Patience Step that Pays Off

Once the topping sets, the bars need to chill for at least 2 hours. Don’t rush this. Warm bars won’t slice cleanly. The peanut butter and butterscotch layer needs time to grip the coconut base. I keep mine in the fridge overnight, then slice with a long, sharp knife the next morning.

Wipe the blade between cuts. I learned that from a pastry chef who once watched me try to slice without cleaning—and the whole batch turned into a crumbly mess.

If you want precise, café-style rectangles, use a ruler. But truthfully, I often eyeball mine. Slight imperfections remind people these came from your kitchen, not a box.

How I Serve and Store These Bars

On a tray, I separate them with parchment squares if I’m stacking. These travel well and stay fresh at room temperature for about 2 days. After that, the topping softens too much unless you chill them.

I also freeze them in a single layer on a baking sheet, then move them to a container. That way, I can pull a few out whenever I need them. Just 15 minutes at room temp and they’re ready.

You can wrap them up in cellophane for holiday gifts too. They hold their shape and look polished even after a car ride. I’ve tucked these into teacher gifts and neighbor tins. They always go first.

Save, Bake, and Share

If these Coconut Toffee Bars end up in your holiday rotation, I’d love to hear. Tell me in the comments how they turned out. Share if you made any swaps or if your guests asked for the recipe.

Pin this post to your Christmas Dessert board so you don’t lose it. That’s what I do with all my favorites.

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