Preheat the oven to 350°F (175°C). Grease and flour two 9-inch round cake pans or line them with parchment paper.
Make the cake batter: In a medium bowl, whisk together flour, baking powder, and salt.
In a large bowl, cream butter and sugar together until light and fluffy, about 3–4 minutes. Beat in eggs one at a time, then add vanilla extract.
Gradually add the dry ingredients to the butter mixture, alternating with milk, beginning and ending with flour. Mix until just combined.
Divide the batter evenly between the pans and smooth the tops. Bake for 25–30 minutes, or until a toothpick inserted in the center comes out clean.
Let the cakes cool in the pans for 10 minutes, then remove to wire racks to cool completely.
Make the Caramel Frosting:
7. In a medium saucepan over medium heat, melt butter. Stir in brown sugar and cook for 2–3 minutes until bubbly.
8. Slowly whisk in heavy cream and bring to a gentle boil. Cook for another 2 minutes, stirring constantly, then remove from heat.
9. Stir in vanilla extract and let the mixture cool slightly. Gradually whisk in powdered sugar until smooth and spreadable. If it thickens too quickly, add a splash of cream to loosen it.
Assemble the Cake:
10. Place one cake layer on a plate and spread a layer of caramel frosting over the top. Add the second cake layer and pour the remaining caramel frosting over the top and sides, working quickly before it sets.
11. Let the cake rest for about 30 minutes before slicing.
This Southern Caramel Cake is rich, buttery, and sweet with a deep caramel flavor—an old-fashioned dessert that taste