1. Beat in the eggs one at a time, followed by the vanilla extract.
2. Alternately add the dry ingredients and milk to the wet mixture, starting and ending with the dry ingredients.
3. Fold in the diced apples.
4. Divide the batter evenly among the three prepared pans.
5. Bake for 25-30 minutes or until a toothpick inserted in the center comes out clean.
6. Let the cakes cool for 10 minutes in the pans, then transfer them to wire racks to cool completely.

3. Make the Frosting (Optional):

1. In a large bowl, beat the softened butter until creamy.
2. Gradually add powdered sugar and beat until fluffy.
3. Add the caramel sauce, heavy cream, and vanilla, beating until smooth.

4. Assemble the Cake:

1. Place one cake layer on a serving plate. Spread a layer of caramel frosting over the top.
2. Repeat with the second layer.
3. Add the final cake layer and frost the top and sides.
4. Drizzle caramel sauce over the top and let it drip down the sides.
5. Garnish with thin apple slices, crushed pecans, and extra caramel if desired.

Recipe Variations

• Apple Walnut Sponge Cake: Fold ½ cup chopped walnuts into the batter for added crunch.
• Salted Caramel Version: Increase sea salt in the caramel sauce to 1 tsp for a stronger salty-sweet contrast.
• Spiced Apple Cake: Add ¼ tsp ground cloves and ¼ tsp ground ginger for a warmer, spicier flavor.
• Vegan Apple Cake: Replace eggs with flax eggs, butter with coconut oil, and use a plant-based milk.