To Make the Salted Caramel:

1. Start with caution.  Caramel is hot sugar and the steam it produces can cause burns, so please do this step when you’re fully engaged.  I don’t want you to get burned!
2. Place granulated sugar in the bottom of a large (at least 2.5-qt), heavy-bottomed saucepan.  Turn heat to high medium and watch sugar carefully as it begins to melt. This will take about 5-7 minutes.
3. Once the sugar begins to melt, stir with a balloon whisk like this one.  It’s important that the whisk not have a metal handle, since a metal handle will conduct heat from the pan.
4. Keep stirring constantly until all of the lumps of sugar melt, the sugar is a deep brown color, and the sugar has a slightly nutty smell.
5. Add all of the butter and continue carefully whisking.  The mixture will bubble A LOT when you add the butter and there will be a lot of steam, so be careful with this step.
6. Stir butter into the mixture gently until it’s nearly incorporated, for about 1-2 minutes.
7. Remove the mixture from the heat. Add all of the heavy cream at one time while the mixture is off the heat.  Again, the mixture will bubble so be careful!  Stir the mixture until everything is fully combined. (1-2 minutes)
8. Add the salt and stir to combine.  Caramel will be very loose at this point and that is normal!
9. Pour caramel into a heat-safe container and allow to cool completely at room temperature.

To Make the Cake/Cupcakes:

1. Set your oven to a true 325°F.  An oven thermometer is very useful to help you determine whether your oven is at the correct temperature.
2. Prepare a standard cupcake pan with 12 muffin cups.
3. Combine the granulated sugar and vanilla beans (if using) in a medium bowl and stir with a whisk to combine and slightly break up the beans.
4. Sift cake flour, baking soda, and kosher salt in a medium bowl and set aside.
5. Add room-temperature butter and oil to a large mixing bowl, or to the bowl of a stand mixer.  Mix until combined.  Add the vanilla sugar and cream the butter and sugar until light and fluffy, scraping the bowl regularly to ensure even mixing.
6. Add the eggs, one at a time.  Add the next egg only once the previous egg has been fully incorporated.
7. Add the pure vanilla extract (if using) and mix thoroughly to combine.  Scrape the bowl regularly to ensure even mixing. If using vanilla bean, you can skip this step.
8. Add half of the cake flour mixture and mix until nearly combined.
9. Add all of the sour cream and mix until nearly combined.
10. Add the other half of the flour mixture and mix until nearly combined.  Scrape the sides and bottom of the bowl, and then gently fold the mixture together until it is fully combined.
11. Prep two 5” cake pans and twelve muffin cups (I actually like to double the muffin cups – so, two muffin cups per cupcake).  Fill each cake pan no more than 1/3 full, and then use a standard ice cream scoop to fill the twelve muffin cups.
12. Bake for 18-24 minutes, or until an instant-read thermometer reads 205°F in the center of the cakes.  The cupcakes should spring back under your finger.
13. Allow the cake and cupcakes to cool on cooling racks for 5-7 minutes, then turn place the cake and cupcakes onto cooling racks to finish cooling.

To Make the Cream Cheese Frosting:

1. Add the room-temperature butter to the bowl of your stand mixer, or a large mixing bowl.  Mix with the flat beater attachment until smooth.
2. Add the cream cheese and vanilla bean and blend together until smooth.
3. Add fine sea salt and 1.5 cups of the confectioner’s sugar.  Blend on low speed until there is no evidence of the confectioner’s sugar.  Add the confectioner’s sugar, 1.5 cups at a time, and repeat the process of blending until the confectioner’s sugar is invisible.
4. Once the confectioner’s sugar is completely incorporated, blend on medium speed until the frosting has increased in volume, about 2-4 minutes.
5. You can use immediately, or you can refrigerate and re-whip when ready to use.  This frosting should be slightly softer than American Buttercream, but it should still pipe-able with the Wilton 12 piping tip!  You can also smooth the Cream Cheese Frosting onto the cake and create a beautiful cake/cupcake display!