Prep the pans and oven. Heat the oven to 350°F (175°C).
Grease and line two 8-inch round cake pans with parchment. Lightly flour the sides for easy release.
Whisk dry ingredients. In a medium bowl, whisk flour, baking powder, baking soda, and salt. Set aside.
Cream butter and sugars. In a large bowl, beat the butter, brown sugar, and granulated sugar on medium speed for 2–3 minutes until light and fluffy.
Scrape the bowl.
Add eggs and vanilla. Beat in the eggs one at a time, mixing well after each. Add the vanilla and mix again. The mixture should be smooth and creamy.
Combine wet and dry. Add half the dry ingredients, then the buttermilk and oil, then the remaining dry ingredients.
Mix on low just until combined. Do not overmix.
Bake. Divide the batter evenly between pans. Bake for 25–30 minutes, or until the centers spring back and a toothpick comes out clean with a few moist crumbs.
Cool completely. Let the cakes cool in the pans for 10 minutes.
Turn out onto a wire rack, peel off parchment, and cool fully before frosting.
Make the caramel base. In a heavy saucepan, stir together sugar and water. Cook over medium heat without stirring, swirling the pan gently as it boils. Watch for the color to turn a deep amber (6–9 minutes).
Remove from heat.
Finish the caramel. Carefully whisk in warm cream (it will bubble vigorously). Add butter, salt, and vanilla. Whisk until smooth.
If any hard bits form, return to low heat and stir until dissolved. Cool to room temperature; it should thicken slightly but still be pourable.
Make the frosting. In a mixing bowl, beat 2 1/2 cups powdered sugar with the cooled caramel until creamy. Add more powdered sugar as needed for a spreadable, fluffy frosting.
If it gets too thick, beat in 1–2 tablespoons milk or cream. Taste and adjust salt.
Assemble the cake. Place one cake layer on a stand. Add a generous layer of frosting.
Top with the second layer and frost the top and sides. For a smooth finish, chill for 15 minutes and add a final coat.
Optional drizzle. Reserve a few tablespoons of caramel before adding powdered sugar. Warm it slightly and drizzle over the finished cake.
Set and serve. Let the cake rest 20–30 minutes so the frosting firms up.
Slice with a warm knife for clean cuts.