1-First Step: Prep and pans Preheat the oven to 300°F (135°C). Grease and flour three 8-inch round cake pans. If you prefer, line the bottoms with parchment rounds for easier release. Gather all ingredients and bring eggs, butter, and sour cream to room temperature for smoother batter and better rise.

2-Second Step: Mix dry ingredients In a medium bowl, whisk together 3 cups all-purpose flour, 1 tablespoon apple pie spice, 1 1/2 teaspoons baking soda, and 1/4 teaspoon kosher salt. Whisking helps distribute the leavening and spices evenly so every slice tastes consistent.

3-Third Step: Cream butter and sugar In a large bowl or the bowl of a stand mixer, cream 3/4 cup unsalted butter (room temperature) with 2 1/8 cups granulated sugar until light and fluffy. This usually takes about 3 to 5 minutes on medium speed. The butter should shift from bright yellow to a paler color as air is incorporated. Beat in the 3 large eggs one at a time, scraping the bowl between additions for an even mix.

4-Fourth Step: Add wet flavor components Once eggs are incorporated, mix in 2 teaspoons vanilla extract, 1/2 cup sour cream, and 4 oz applesauce. These ingredients add moisture, flavor, and a tender crumb. Mix until just combined to avoid overworking the batter.

5-Fifth Step: Combine dry and wet Alternate adding the dry flour mixture and 1 cup whole milk to the wet ingredients. Start and finish with the flour mixture. For example: add one third of the dry mix, then half of the milk; repeat and finish with the remaining dry mix. Mix gently between additions until just combined. Overmixing can make the cake dense.

6-Sixth Step: Fold in apples Fold in 1 cup apples, peeled and shredded, with a spatula until evenly distributed. Fold gently so you keep air in the batter while ensuring the apple is spread evenly throughout.

7-Seventh Step: Bake Divide the batter evenly among the three prepared 8-inch pans. Smooth the tops with a spatula and tap pans lightly on the counter to release large air bubbles. Bake for 35 to 40 minutes or until a toothpick inserted in the center comes out clean. Oven times can vary; if you are using 9-inch pans or a bundt pan, adjust bake time accordingly (see tips below).

8-Eighth Step: Cool completely Remove pans from the oven and let the cakes cool in the pans for 10 to 15 minutes. Run a knife around the edges, then invert onto a cooling rack to cool completely. Cool fully before frosting to prevent the caramel frosting from melting and sliding off.

9-Ninth Step: Make the caramel frosting In a small saucepan, melt 1 cup unsalted butter over medium heat. Add 1 1/2 cups packed light brown sugar and 1/3 cup heavy cream. Whisk constantly until the sugar dissolves and the mixture comes to a gentle boil, letting it bubble for about 2 minutes while whisking. Remove from heat and stir in 1/4 teaspoon kosher salt and 1 teaspoon vanilla extract. Let the caramel mixture cool fully to room temperature before adding powdered sugar cooling prevents the powdered sugar from becoming grainy or overly runny. Once cooled, transfer to a stand mixer bowl and whisk in 4 to 5 cups powdered sugar gradually until you reach the desired consistency. Add more cream, a tablespoon at a time, if you need a softer frosting. Beat until smooth and creamy.

10-Final Step: Assemble and decorate Place one cake layer on a serving plate and spread 1 to 2 cups of caramel frosting between each layer. Repeat with the second layer and top with the final layer. Apply a thin crumb coat to the sides, chill for 15 minutes, then fully frost the cake. Decorate with optional toppings such as caramel apples or chopped pecans. Chill briefly to set the frosting before slicing and serving.