Homemade Rainbow Chip Frosting

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Turn any frosting into homemade rainbow chip frosting with two simple ingredients. This colorful frosting is perfect for topping any cakes or cupcakes (and more) to celebrate any occasion!

The recipe below is a traditional vanilla buttercream with a touch of cream cheese folded in– not enough to call it a full cream cheese frosting, just enough to get that closer, slightly tangy richness the original had. But cream cheese isn’t a requirement here: further down, I’ll show you how to fold these homemade rainbow chips into literally any frosting base you already love.

So technically, rainbow chip frosting isn’t discontinued anymore, but that doesn’t mean it’s easy to grab off the shelf. Between shifting retail distribution and demand that still spikes any time nostalgia kicks in, it can be genuinely hit or miss at your local store, and you might find yourself scrolling through online retailers just to track down a can (which is always way too overpriced, if you ask me).

That’s exactly why homemade rainbow chip frosting deserves a spot in your recipe box, discontinued or not. Rainbow sprinkles are an ok replacement for the real deal, but when it comes to that smooth, white chocolate flavor and the melting of the white chocolate in every bite, nothing beats making it yourself.

More than that, there’s no more waiting on restocks or chasing down a specific can– just melted white chocolate, tinted however you like, folded into whatever frosting you’re already making. Honestly, it might just be more fun than the store-bought version ever was.

For this rainbow chip frosting recipe, you will need:
• high-quality white chocolate
• food coloring in desired colors (I prefer oil-based coloring– linked in the recipe below)
• unsalted butter
• full fat block cream cheese
• powdered sugar
• milk or cream
• vanilla extract
• salt

You will want to make sure you’re using baking chocolate that comes in a bar or vanilla melting wafers. I prefer Ghirardelli or Baker’s brand whenever I am melting chocolate.

Portion out the chocolate: separate the white chocolate into 4 small prepared bowls. I like to use ramekins because they are small enough that the chocolate doesn’t cool too quickly.

Color the chocolate: working with one portion of white chocolate at a time, add a tiny bit of color to one portion, then stir to blend.

If you are using traditional or gel food coloring and the chocolate starts to harden, don’t panic: simply add a few drops of vegetable oil (or other neutral oil) or a tiny bit of vegetable shortening to bring it back. You may have to heat it again ever so slightly to encourage smoothness, but don’t heat it too much or too quickly, or it will seize again.

Make your chocolate rectangles: once your white chocolate is colored, spread it into a thin layer on a lined baking sheet. My rectangles are usually about 6″ x 4″ but this does not need to be exact. You just don’t want the chips to be so small that they are paper-thin.

When all of your colors are spread onto the baking sheet, pop the baking sheet in the fridge so the colors can set up while you make the buttercream.

Add the remaining ingredients: turn the mixer to low, then slowly add the powdered sugar and mix until everything is combined. Add the vanilla extract, milk or cream (if needed), and salt, then increase the mixer speed to medium and beat until combined.

Make the frosting creamy: turn off the mixer and use a spatula to stir the buttercream by hand to remove air bubbles and make it smooth and creamy. This usually takes about 3-5 minutes.

This will remove air bubbles and make it smooth and creamy. Bonus points: it only takes about 3-5 minutes and will make a giant difference in the aesthetic of your buttercream.

In my experience, adding in the very tiny flecks that come with chopping any kind of chocolate tend to bleed into the white frosting because they start to dissolve with the moisture of the frosting. Try to leave those tiny pieces out and keep them in the ¼ cup of chips you don’t add to the frosting but rather use for sprinkling on top of the frosting like you would sprinkles.

While rainbow chips would work best with a white or light colored frosting, there is no reason you couldn’t make a chocolate rainbow chip frosting, just understanding the colors won’t pop as much against a darker background.

If you want to make a smaller batch of rainbow chip frosting, I recommend making the 4 ounces of white chocolate rainbow chips, then using a smaller portion of the chips. Since there is no rainbow chip amount written in stone for this frosting recipe, you can be the judge of how many rainbow chips to actually add.

While I would not recommend adding the entire cup of rainbow chips to a smaller batch of frosting, you are the judge and you know your tastes! You can always add more, so start with a small amount and go from there.