In a large mixing bowl, beat the softened butter(½ cup, i.e., 1 stick) on medium using a hand or stand mixer with paddle attachment for 2-3 minutes or until creamy. Slowly add in powdered sugar(1 ½ cups), heavy cream (¼ cup), and vanilla extract(1 teaspoon). Continue mixing on high speed for 2 minutes.
Add caramel sauce(⅔ cup).
Slowly turn the mixer up to high speed and beat for 3-4 minutes. You may need to stop the mixer half-way through to scrape the sides of the bowl with a rubber spatula.
Add frosting to a piping bag to frost or use a knife to spread on top of cake/cupcakes.