Preheat your oven to 350°F (175°C). Grease and flour three 9-inch round cake pans.

In a large bowl, cream together the butter and sugar until light and fluffy.

Add eggs one at a time, mixing well after each addition. Stir in vanilla.

In another bowl, mix flour, baking powder, baking soda, and salt. Gradually add the flour mixture and milk to the creamed mixture, beginning and ending with flour.

Divide the batter evenly among prepared pans and smooth the tops.

Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean.

Let the cakes cool in the pans for 10 minutes, then transfer to wire racks to cool completely.

For the frosting, beat the heavy cream until soft peaks form, then gradually add powdered sugar and mix until stiff peaks form.

Spread the caramel frosting between the cake layers and on the top and sides of the cake.

Drizzle additional caramel sauce on top and sprinkle with chopped nuts or candy for crunch.

Slice and serve with a scoop of vanilla ice cream or a dollop of whipped cream.