Bright, tangy, and irresistibly creamy, this Key Lime Butter recipe brings a burst of citrus sunshine to your kitchen. Whether you’re spreading it on warm scones, folding it into whipped cream, or melting it over grilled seafood, this butter adds a zest twist that’s perfect for summer.

Whipped Key Lime Butter

If you’re looking for more compound butter ideas, Whipped Chocolate Butter and Summer Herb Butter will make your taste buds happy.

This Key Lime Butter is especially delightful when paired with baked goods – try it on blueberry muffins, banana bread, or even pancakes for a citrusy kick that feels like a mini vacation. The balance of sweetness and tartness makes it versatile enough for both sweet and savory dishes.

Store this recipe rolled in parchment paper in the fridge for up to a week, or freeze slices for a quick flavor boost whenever needed. Whether you’re hosting a summer brunch or want to elevate your toast game, this Key Lime Butter is a must-try.

I found this recipe in a Christmas with Southern Living Cookbook from 1998. I thought it would make a delicious compound butter.

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Since you found this recipe for Key Lime Butter, I’m guessing you love all things cozy living. I created a Facebook group called Creating a Cozy Life with over 214,000 like-minded souls.

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Ingredients to Gather

• Butter – with its rich and creamy texture, serves as the luscious foundation to this recipe.
• Powdered Sugar – also known as confectioners’ sugar, brings a subtle sweetness and smooth consistency.
• Key Limes – with their petite size and intense citrus flavor, they infuse a distinctive and zesty tang that elevates the profile of this recipe.
• Sweetened Condensed Milk – a velvety and sweet dairy product, it adds a rich sweetness to this compound butter recipe.

Simple Ingredients

1 cup butter, softened

3 tablespoons powdered sugar

3 tablespoons Key lime juice

3 tablespoons sweetened condensed milk

1/2 teaspoon grated lime rind

Pinch of salt

Directions

1. Mix together softened butter, powdered sugar, Key lime juice, sweetened condensed milk, and salt with beaters. Be sure all the ingredients are mixed well together. Stir in rind.

2. Spoon butter in a small crock or glass jar. Cover and chill in the refrigerator.

Tips

• Use real key limes if possible. Authentic Key limes have a more floral, tart flavor than regular Persian limes. Freshly squeezed juice makes all the difference.
• Zest before juicing. Always zest your limes before cutting them. The zest holds essential oils that add a bright, concentrated lime flavor.
• Start with room temperature butter. Softened butter blends more smoothly with citrus juice and zest, preventing lumps and helping the flavors blend better.
• Add a pinch of salt. Even in sweet versions, a small pinch of salt enhances the citrus flavor and adds depth.
• Whip for extra fluffiness. Beat the mixture with a hand mixer for 2-3 minutes to make it extra light and spreadable, especially if you’re serving it on warm biscuits or pancakes.
• You can substitute regular limes for key limes. The taste will be slightly different, but they will work in a pinch.
• If you buy store-bought Key lime juice, you can use regular lime zest.

Storage

You can store Key lime butter in the refrigerator for up to five days when stored in an airtight container. This recipe also freezes well and will last up to three months when stored in a freezer bag.

Uses for Key Lime Compound Butter

• Spread on Warm Scones or Biscuits – The citrusy tang brightens up buttery, flaky pastries, making them perfect for brunch.
• Melt over Pancakes, Waffles, or French Toast – Adds a tropical twist without needing syrup.
• Dollop on Banana Bread or Muffins – The lime adds a sweet-sour balance to baked goods.
• Topping for Grilled Pineapple or Peaches – Melt a pat of butter over warm fruit for a next-level summer dessert.
• Melt over Grilled Shrimp or Fish – Key lime pairs beautifully with seafood like mahi-mahi, cod, or salmon.
• Stir into Rice or Quinoa – Add a pat to warm grains for a citrusy Caribbean-style side dish.
• Rub Under Chicken Skin Before Roasting – Infuses the meat with flavor and keeps it juicy.
• Top Grilled Corn on the Cob – Use instead of plain butter for a tangy upgrade.
• Use on Tacos or Burritos – Spread a little inside warm tortillas for a tropical twist – especially good with fish tacos.

Compound Butter Toolbox

• This homemade key lime butter could be put in a small Mason jars with a small knife tied to the jar with a ribbon.
• You can pair key lime butter with a book on flavored butters and butter molds for the perfect gift.

Let me know in the comments below if you tried the recipe and what you thought.

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I created a key lime butter pin for you to add to your condiment Pinterest board to refer back to this recipe.

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Recipe Card for Key Lime Butter with Nutritional Information