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Cream the butter and sugar together until light and fluffy. Add the eggs one at a time, beating well after each addition. Add the vanilla extract and mix well. Sift the flour, baking powder, bicarbonate of soda, and salt over the mixture. Pour the evaporated milk over the top, and gently fold together.
Divide the batter evenly between the prepared pans and bake for 25-35 minutes or until an inserted toothpick comes out clean. Allow to cool.
Cream the butter until light and fluffy. Add 1 cup of icing sugar and beat well. Gradually add the remaining sugar, alternating with the cream. Add the vanilla and salt, beat well and stir in the chopped pecans.
Spread a layer of caramel on each cake layer. Top with a thin layer of the frosting. Place the cakes on top of each other. Use the remaining frosting to ice and decorate the cake. Top with pecan nuts.
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