Grease 2 8" round cake pans and line the bottoms with parchment paper.
Icing (do this first as it will need time to cool): Dissolve the sugar in the water in a medium saucepan over medium-low heat, do not stir When the sugar seems dissolved, turn the heat up to medium-high and bring to a boil Boil until it turns a nice dark golden brown color, remove from heat and add the cream It will get lumpy!
Don't worry, whisk as much of the lumps out as you can and then return to medium heat and whisk out the remaining lumps When it is smooth, remove from heat until it is cooled, I just set the whole thing in the refrigerator until I need it again.
Cake: Cream the butter and sugars with an electric mixer.
Add the eggs one at a time until combined.
Add the cake flour and the baking soda and mix until combined.
Add the cream 1 Tbls at a time until combined.
Divide the batter between the 2 prepared cakepans and smooth the tops.
Bake for 25 minutes or until the cake starts pulling away from the sides and a cake tester comes out clean Cool for 10 minutes on a wire rack, then remove from the pans and cool completely Assembly: Take the cream cheese and beat until smooth and fluffy, add 1 cup of the caramel mixture and beat until combined Place 1 cake layer on a plate, using a spatula, spread half of the icing mixture on top of the first layer Place the 2nd layer on top and top with the remaining icing.
Take the remaining caramel mixture and drizzle it over the top of the cake, letting it run down the sides.