Preheat oven to 350°F (175°C). Grease two 8-inch round cake pans and line bottoms with parchment paper.

In a medium bowl, sift together flour, baking powder, and salt.

In a large bowl, whisk egg yolks with ½ cup sugar until thick and pale yellow (3-4 minutes). Whisk in vanilla extract, milk, and oil until smooth.

In a separate clean bowl, beat egg whites using an electric mixer. Start on medium speed until soft peaks form, then gradually add remaining ½ cup sugar. Continue beating until stiff, glossy peaks form.

Gently fold the dry ingredients into the yolk mixture using a spatula. Then gradually fold in the whipped egg whites in three batches, using a light hand to preserve air bubbles.

Divide batter evenly between prepared pans and bake for 20-25 minutes until cakes spring back when touched and a toothpick inserted in center comes out clean.

Allow cakes to cool in pans for 10 minutes before transferring to cooling racks to cool completely.

For the caramel whipped cream: In a chilled bowl, whip heavy cream until soft peaks form. Gently fold in caramel sauce. Refrigerate until ready to use.

For the caramel glaze: In a medium saucepan, combine sugar and water over medium heat. Cook without stirring until mixture turns deep amber (8-10 minutes). Remove from heat and carefully add warmed heavy cream while stirring constantly. Once bubbling subsides, stir in butter until glaze is smooth and shiny. Cool for 10-15 minutes until slightly thickened but still pourable.

To assemble: Place one sponge layer on a cake stand. Spread an even layer of caramel whipped cream, leaving ½ inch from edge. Place second sponge layer on top.

Pour caramel glaze over the top of cake, starting at center and working outward, allowing it to naturally flow down sides. Use an offset spatula to guide glaze if needed.

Add chosen garnishes once glaze has set slightly.

Refrigerate assembled cake for at least 1 hour before serving to allow layers to meld and glaze to set.

For serving, use a sharp knife dipped in hot water and wiped clean between each slice.