Sift dry ingredients together in a bowl and set aside.
Beat butter, sugars, eggs and vanilla in a large bowl until fluffy (5 minutes).
Alternate dry mix with buttermilk and beat on low just until blended.
Pour evenly into two 8-inch round cake pans that have been buttered and floured. Bake for 30 minutes or until a toothpick come out clean. Let cool 5 minutes in pan then turn out onto wire racks to cool completely.
Caramel Cream Cheese Frosting
Put sugar and water into a heavy pot (heavy prevents scorching) over medium high heat stirring until it starts to boil. Once it boils, do not stir anymore. Let bubble for about 7-10 minutes or until it turns golden brown and smells like caramel. Remove from heat and stir in butter until it melts. Then beat on low speed with your mixer until it emulsifies. Add vanilla, cream cheese and salt and beat until creamy. Scrape into a heatproof bowl and put in refridgerator to cool (it will thicken as it cools).