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

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

In a large mixing bowl, beat the softened butter and granulated sugar together until light and fluffy (about 3–5 minutes).

Add eggs one at a time, beating well after each addition. Stir in the vanilla extract.

Alternate adding the dry ingredients and milk to the butter mixture, beginning and ending with dry ingredients. Mix until just combined. Fold in the chopped pecans.

Divide the batter evenly between the prepared pans. Bake for 30–35 minutes or until a toothpick inserted in the center comes out clean. Cool in pans for 10 minutes, then turn onto wire racks to cool completely.

In a saucepan over medium heat, melt butter and stir in brown sugar and milk. Bring to a boil, stirring constantly. Remove from heat and cool slightly. Beat in powdered sugar and vanilla until smooth.

Once the cakes are completely cooled, frost the top of one layer, stack the second layer, and spread frosting over the top and sides.

In a saucepan, combine butter, brown sugar, and milk. Bring to a boil and stir for 2–3 minutes until thickened slightly. Remove from heat and stir in pecans.

Pour the warm caramel pecan topping over the frosted cake. Let it drip slightly down the sides. For extra flair, drizzle with store bought or extra caramel sauce. Slice and serve!