• Preheat the oven to 350 degrees. Grease and flour three 8x2 inch pans.
• Mix butter at medium speed until softened and smooth. Gradually add granulated sugar and brown sugar, mixing on medium speed 4 to 5 minutes.
• Add egg yolks, one at a time, beating after each addition until the yellow of the yolk is blended. Add Vanilla extract.
• In a separate bowl, add flour, baking soda, and salt, whisk at least 30 seconds to blend.
• With the mixer on low speed, add the flour mixture to the butter mixture alternately with buttermilk, beginning and ending with flour mixture (that is 3 additions of dry ingredients and 2 additions of buttermilk) After last addition, mix just until blended..
• Fold in pecans and coconut; using a spoon or spatula until combined.
• Beat egg whites at high speed until stiff peaks form. Using a spatula or spoon, gently fold into batter.
• Spoon batter into three 8 inch cake pans. Bake at 350 degrees for 20 to 25 minutes or until inserted toothpick comes out clean. Cool in pans for 10 minutes, then remove and cool on wire racks.

For the Caramel Cream Cheese Frosting

• Cut the softened butter into slices and add to the bowl of your mixer. Beat on low to medium speed until the butter is softened and smooth.
• Cut the softened cream cheese into pieces and add to the butter, beating at low to medium speed until incorporated. If you are using a hand mixer you may need to soften the cream cheese a bit more.
• Add the vanilla extract and 3 tablespoons of caramel sauce. Gradually add the powdered sugar beating on low speed until blended. Cover the bowl with a towel to keep down the cloud of powdered sugar.
• Increase mixing speed and beat until fluffy. Be careful not to over-mix as it will become very soft. If it becomes too soft, chill until it firms up.
• This frosting will pipe best if used while still chilled. You can make it in advance, refrigerate and when ready to use let it soften slightly (do not microwave) and remix.

Assembling the Cake

• Place the first cake layer on the cake base or pedestal. Glaze with a thin layer of caramel sauce. (I don't take the sauce all the way to the edge).
• Using a disposable piping bag with the tip snipped away (or ziplock bag with corner snipped away, pipe on a layer of caramel cream cheese frosting (I do this in a spiral pattern) and then lightly spread with a spatula.
• Top with the next cake layer. Glaze with caramel, fill, and top with the third cake layer.
• Fill in any gaps between cake layers with frosting, then crumb coat the cake (thin layer of frosting). Chill the cake in the freezer for 15 minutes (or longer in the refrigerator) to firm everything up before applying the final coat of frosting.
• Decorate however you like! We pressed chopped pecans around the base of the cake, and added a spiral of caramel on top using a disposable piping with a very small bit of the tip snipped away. We added a french tip border with a Tip 869.