1. Preheat the oven to 350°F (175°C). Grease and flour three 8-inch round cake pans.
2. In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.
3. In a large bowl, cream the butter, granulated sugar, and brown sugar until light and fluffy.
4. Add the eggs one at a time, beating well after each addition. Stir in the vanilla extract.
5. Gradually add the dry ingredients to the wet ingredients, alternating with the coffee and milk. Begin and end with the dry ingredients. Mix until just combined.
6. Divide the batter evenly among the prepared cake pans. Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean.
7. Allow the cakes to cool in the pans for 10 minutes, then turn them out onto a wire rack to cool completely.
To Make the Buttercream: 8. Beat the butter until creamy. Gradually add the powdered sugar, one cup at a time, beating well after each addition.
9. Add the coffee, caramel sauce, and vanilla extract. Continue to beat until light and fluffy.
To Assemble the Cake: 10. Place one layer on a serving plate, spread a layer of caramel sauce, then repeat with the remaining layers.
11. Frost the sides and top of the cake with buttercream. Drizzle additional caramel sauce on top for decoration.
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