Preheat your oven to 350°F (175°C). Grease and flour two round cake pans. In a bowl, combine all-purpose flour, cocoa powder, baking powder, and baking soda.

In another bowl, cream together granulated sugar and softened butter until light and fluffy. Add the eggs one at a time, mixing well. Gradually incorporate buttermilk and hot water to create a thin batter.

Pour the batter into prepared pans and bake for 30-35 minutes, or until a toothpick comes out clean. Let the cakes cool in the pans for 10 minutes, then transfer to wire racks.

To make caramel frosting, beat softened butter until creamy. Gradually add powdered sugar and caramel sauce to the butter, mixing until well combined and fluffy.

Once cakes are completely cooled, place one layer on a serving plate. Spread a layer of caramel frosting on top and sprinkle toffee bits. Place the second layer and frost with remaining caramel frosting.

Drizzle additional caramel sauce over the frosted cake and ensure it looks appetizing before serving.

Slice the cake into wedges and serve it to your family and friends for a delightful treat.