Preheat your oven to 350°F (175°C). In a large mixing bowl, whisk together the all-purpose flour, cocoa powder, baking powder, and salt until well combined.

In a separate bowl, cream together granulated sugar and softened butter until light and fluffy. Add eggs one at a time, mixing well after each addition.

Gradually combine the wet and dry ingredients, then carefully stir in hot water until your batter is smooth and glossy.

Grease and line two 9-inch round cake pans with parchment paper and evenly pour the batter into the prepared pans. Bake for 30-35 minutes or until a toothpick comes out clean.

Allow the cakes to cool in the pans for about 10 minutes before transferring them to a wire rack to cool completely.

For the caramel frosting, beat the softened butter until creamy, then gradually add powdered sugar and mix until blended. Pour in caramel sauce, beating until fluffy and spreadable.

Place one cake layer on a serving platter, spread caramel frosting generously on top, then add the second layer and coat the top and sides with remaining frosting.

Sprinkle toffee bits on the frosting, allowing some to stick to the sides for added texture.

Slice and serve the cake, pairing it beautifully with a glass of cold milk or a hot cup of coffee.