Preheat the oven to 325°F (163°C). Grease and flour three 9-inch cake pans, then line the bottoms with parchment paper circles. Set aside.

In a large bowl, cream together the butter and sugar until light and fluffy. Beat in the eggs, one at a time, ensuring each is fully incorporated before adding the next.

In a small bowl, whisk together the apple butter, vegetable oil, and sour cream until smooth.

In a separate bowl, combine the flour, baking soda, baking powder, salt, cinnamon, and nutmeg.

Gradually add the apple butter mixture and the dry ingredients to the creamed butter and sugar, alternating between the two and mixing well after each addition.

Stir in the grated carrots until evenly distributed throughout the batter.

Divide the batter evenly among the prepared cake pans. Bake for 35–40 minutes, or until a toothpick inserted into the center comes out clean.

Let the cakes cool in the pans on a wire rack for 30 minutes. Carefully remove the cakes from the pans, peel off the parchment paper, and allow them to cool completely on wire racks.

Once cooled, use a serrated knife to trim the rounded tops of the cakes for an even surface.

Spread about 2 ½ cups of frosting on the first cake layer. Add the second and third layers, frosting each with an additional 2 ½ cups of frosting.

Drizzle caramel ice cream topping around the edges of the top layer, letting it cascade down the sides.

Sprinkle chopped pecans over the top of the cake for decoration.

Beat the cream cheese in a bowl until smooth and creamy.

Mix in the powdered sugar until well combined.

Add the apple butter and vanilla extract, beating until fully incorporated.

Gently fold in the whipped topping until the frosting is light and fluffy.