Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.

In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy. Add the eggs one at a time, mixing well after each addition. Stir in the vanilla extract.

In another bowl, whisk together the flour, baking powder, and salt. Gradually add the dry ingredients to the butter mixture, alternating with the milk. Mix until just combined. Fold in the toffee bits.

Divide the batter evenly between the prepared cake pans. Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean. Allow the cakes to cool in the pans for 10 minutes, then transfer to wire racks to cool completely.

While the cakes are cooling, whip the heavy cream with the powdered sugar until soft peaks form.

Once the cakes are completely cool, place one layer on a serving plate. Spread a layer of caramel sauce over the top, followed by a layer of whipped cream. Place the second cake layer on top and repeat with more caramel sauce and whipped cream.

Top the cake with additional toffee bits for garnish.