Step 1: Prepare the Cake

• Preheat your oven to 350°F (175°C). Grease three 8-inch round cake pans and line them with parchment paper for easy release.
• In a medium bowl, whisk together the flour, baking powder, baking soda, cinnamon, and salt. Set aside.
• In a large mixing bowl, blend the brown sugar, oil, applesauce, caramel sauce, and vanilla extract until smooth.
• Add the eggs one at a time, mixing well after each addition.
• Gradually add the dry ingredients to the wet mixture, alternating with the buttermilk. Begin and end with the dry ingredients.
• Gently fold in the diced apple.
• Divide the batter evenly among the prepared cake pans. Bake for 25–30 minutes or until a toothpick inserted into the center comes out clean.
• Allow the cakes to cool in the pans for 10 minutes before transferring them to a wire rack to cool completely.

Step 2: Make the Creamy Caramel Frosting

• In a medium saucepan, combine the granulated sugar, buttermilk, 6 oz of butter, and baking soda. Cook over medium heat, stirring constantly, until the mixture thickens and turns a caramel color (about 10–15 minutes). Remove from heat and let cool completely.
• In a large mixing bowl, beat the remaining butter until creamy. Gradually add the cooled caramel mixture, powdered sugar, salt, and vanilla extract. Beat until smooth and fluffy.

Step 3: Assemble the Cake

• Place one cake layer on a serving plate. Spread a generous layer of caramel frosting on top.
• Repeat with the remaining layers, then frost the sides and top of the cake. Use an offset spatula to smooth the frosting for a polished look.

Step 4: Prepare the Apple Garnish

• Melt the soft caramels with the heavy cream or water in a small saucepan over low heat, stirring constantly until smooth.
• Insert a lollipop stick into each apple. Dip the apples into the warm caramel, swirling to coat them evenly. Let any excess caramel drip off before placing the apples on parchment paper to set.

Step 5: Decorate and Serve

• Arrange the caramel-dipped apples on top of the frosted cake for a stunning decorative touch.
• Slice and serve this autumnal masterpiece, savoring the perfect blend of spiced cake, creamy caramel frosting, and apple charm.