Add the softened butter to the bowl of a stand mixer fitted with the paddle attachment. Beat on medium-high speed for 3–4 minutes, until very light and fluffy.
Reduce the mixer to low and gradually add the powdered sugar, about one cup at a time.
Once incorporated, add 1/3 cup cooled homemade caramel, vanilla and salt.
Beat on medium speed until completely combined.
Increase to medium-high and whip for another 2–3 minutes, until the frosting is light and fluffy.
If the buttercream is too thick, add heavy cream 1 tablespoon at a time until it reaches your desired piping consistency.
Taste the frosting. If you want a stronger caramel flavor and the buttercream is still firm enough to pipe, you can add another 1–2 tablespoons of caramel sauce.
Mix on low for about 30 seconds at the end to help remove larger air bubbles before piping.
Notes
Important: The caramel needs to be completely cool. Warm caramel can soften or melt the buttercream.