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* This recipe will make one 2-layer cake.
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For the caramel apple cake:
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Preheat oven to 350F; butter and flour 2 (9-inch) round baking pans.
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In a medium bowl, whisk together the flour, baking powder, baking soda, salt, cinnamon, and nutmeg; set aside. In a large bowl, whisk together the sugar and eggs until light and fluffy, then whisk in the oil, milk, and vanilla. Gradually stir the dry ingredients into the wet, then fold in the shredded apple, being careful not to over-mix.
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Divide the batter between the 2 prepared pans, and bake until golden on top and a toothpick inserted inside comes out clean or with just a couple crumbs, about 20 to 24 minutes. Cool completely before assembling.
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Measure out 3 tablespoons from the 1/2 cup of caramel sauce; transfer to a small bowl and reserve it for drizzling on top of the cake once it's frosted.
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To assemble the cake, turn 1 cake out onto a cake stand. Spread on the remaining caramel sauce (other than the reserved 3 tablespoons), leaving a border of about 1/2-inch all around the edge of the cake. Refrigerate 1 hour or until fully chilled, then carefully place the other cake on top.
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Frost the top and sides of the cake with Vanilla-Cinnamon Buttercream Frosting. Chill 1 hour before cutting and serving; wrap any leftovers in plastic wrap and store in the fridge.
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For the homemade caramel sauce: In a small bowl, combine the cream and vanilla; set aside.
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Add the sugar and water to a medium-sized thick-bottomed pot; turn the heat on medium-high and cook until sugar is caramelized and amber in color (see the related blog post for more explanation); you can give the pot a swirl to help the water and sugar dissolve, but do not stir until about 2/3 of the sugar is melted. From that point on, gently stir constantly with a wooden spoon.
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Once the sugar turns amber-colored, carefully add the butter and salt, and stir to combine. Once the butter is melted, turn off the heat and carefully pour in the cream mixture, stirring until smooth.
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Cool completely before using or storing. (This recipe makes about 1 1/2 cups of caramel, and you will only need 1/2 cup for the cake.)
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A note on storing the caramel: This keeps well in the fridge for up to 2 weeks. Like any caramel sauce, it will harden after being refrigerated; to soften, you can gently warm it up in the microwave or on the stovetop.
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For the vanilla-cinnamon buttercream: Use a handheld electric beater to cream together the butter, shortening, vanilla, and cinnamon. Then alternate between beating in the powdered sugar and milk until all the powdered sugar is added and the buttercream is smooth and creamy.
