In a small bowl, mix together the crushed toffee bits and chopped nuts (if using).
In a large mixing bowl, beat the softened butter until creamy. Gradually add the powdered sugar, 1 cup at a time, beating well after each addition. Add the caramel sauce, heavy cream (start with 2 tablespoons and add more if needed for desired consistency), vanilla extract, and a pinch of salt. Beat until the frosting is light and fluffy.
Place one cake layer on a serving plate.
Spread a layer of caramel sauce over the top.
Sprinkle a portion of the crunch topping over the caramel. Add a layer of frosting over the crunch topping. Place the second cake layer on top and repeat with caramel sauce, crunch topping, and frosting. Frost the sides of the cake with the remaining frosting. Decorate the top of the cake with any remaining caramel sauce and crunch topping.
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