Begin by placing softened cream cheese in a mixing bowl. Using an electric mixer, beat on medium speed for about 2 minutes until completely smooth and creamy.

Gradually incorporate the powdered sugar into the creamy mixture. Continue to blend at medium speed for an additional minute.

Gently fold the whipped topping into the cream cheese mixture using a spatula. Mix slowly to avoid deflating the whipped topping.

Spread the creamy mixture into a shallow serving dish or bowl, smoothing the surface.

Carefully pour the caramel sauce over the top of the cream cheese layer.

Sprinkle diced apples evenly over the caramel layer, and add crushed pecans if using.

Cover the dish with plastic wrap and chill in the refrigerator for at least 30 minutes.

Serve with a selection of dippers such as graham crackers, pretzels, or apple slices.