Known at least since Francis Kildale Robinson's A glossary of Yorkshire words and phrases of 1855 (OED). The origin of the name is not clear, it does not seem to be significantly connected with Scotland and may derive from 'scorch'. See: Doncaster Butterscotch
The original source of this receipt isn't known. Can you help? raise an issue on GitHubButterscotch
1/4 pint of water
1lb Demerara sugar
2oz butter
Bring water to the boil, add sugar and butter, heat slowly stirring till sugar dissolves and butter melts, bring to boil and cover pan and boil gently for 2 mins. Uncover continue to boil without stirring for about 12 mins, or until little of mixture dropped into cold water separates into hard, but not brittle, threads. Pour into a buttered tin to set, marking the top with score-line to break when cold.