Step 1: Preheat and Prepare

Preheat your oven to 325°F (163°C). Grease and flour a bundt pan or a tube pan to prevent sticking.

Step 2: Mix Dry Ingredients

In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.

Step 3: Cream Butter, Cream Cheese, and Sugar

In a large mixing bowl, beat the softened butter and cream cheese together until smooth and creamy, about 2-3 minutes. Gradually add sugar and continue beating until light and fluffy.

Step 4: Add Eggs and Vanilla

Add eggs one at a time, beating well after each addition. Stir in the vanilla extract.

Step 5: Incorporate Dry Ingredients and Milk

Gradually add the dry ingredients to the wet mixture, alternating with the milk. Begin and end with the flour mixture. Mix until just combined; do not overmix.

Step 6: Bake the Cake

Pour the batter into the prepared pan, spreading it evenly. Bake for 75-85 minutes or until a toothpick inserted into the center comes out clean.

Step 7: Cool the Cake

Allow the cake to cool in the pan for 10-15 minutes, then turn it onto a wire rack to cool completely before adding the caramel glaze.

Step 8: Prepare the Caramel Glaze

In a saucepan over medium heat, combine brown sugar, heavy cream, and butter. Stir constantly until the mixture comes to a gentle boil. Reduce heat and simmer for 3-5 minutes until thickened. Remove from heat and stir in vanilla extract and a pinch of salt.

Step 9: Glaze the Cake

Slowly pour the warm caramel sauce over the cooled cake, allowing it to drip down the sides. Let it set before slicing and serving.