Step 1: Prepare the Cake Batter

Preheat oven to 350°F (175°C). Grease two 9-inch round cake pans and line the bottoms with parchment paper.

In a medium bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.

In a large mixing bowl, cream the butter and sugar with an electric mixer until light and fluffy (about 3–4 minutes).

Beat in the eggs one at a time, making sure each is fully incorporated.

Alternately add the dry ingredients and milk to the butter mixture, beginning and ending with the dry ingredients.

Stir in the vanilla extract and toasted chopped pecans.

Divide the batter evenly between the two pans.

Bake for 25–30 minutes, or until a toothpick inserted in the center comes out clean.

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

Make the Caramel Sauce

In a medium saucepan over medium heat, cook the granulated sugar, stirring constantly, until it melts into a smooth amber-colored liquid.

Once fully melted, carefully add the butter—it will bubble. Whisk until melted and smooth.

Slowly add the heavy cream, continuing to whisk. Stir until the mixture is fully smooth.

Remove from heat and stir in the vanilla extract and a pinch of salt.

Set aside and let it cool completely before using in the frosting.

Make the Frosting

Beat the softened butter in a mixing bowl until creamy.

Gradually add the powdered sugar, beating on low speed until incorporated.

Add in 1/4 cup cooled caramel sauce, heavy cream, and vanilla extract.

Beat on high until the frosting is smooth, fluffy, and spreadable. Add a bit more cream if needed.

Assemble the Cake

Place one cooled cake layer on a serving plate.

Spread a thick layer of caramel frosting over the top.

Place the second cake layer on top and frost the top and sides of the cake evenly.

Drizzle caramel sauce over the frosted cake, letting it drip down the sides.

Garnish with extra toasted pecans. You can also pipe decorative swirls of frosting around the edges if desired.