Preheat the oven to 350º. Butter and grease two 9 inch cake pans and line with parchment paper.
Use a food processor to grind the pecan until finely ground.
Add butter to a stand mixer and mix at medium speed until light and fluffy, about 2 minutes. Gradually add the sugar and mix on medium high until well mixed, about 5 minutes. Beat in egg yolks one at a time.
In a separate bowl, whisk the ground pecans, flour, baking powder and salt. Add ⅓ of the flour mixture to the butter mixture add ½ of the milk, then the rest of the flour mixture and end with the rest of the milk. Add vanilla and beat until smooth.
In a separate bowl, beat the egg whites until stiff peaks form. Gently fold about ¼ of the egg whites into the batter, once combined, fold in the remaining egg whites. Pour the batter evenly into the two cake pans.
Bake for 28-30 minutes until a toothpick comes out clean and the edges have started to pull away from the sides. Let cool for 5 minutes in the pan then invert to a rack to cool completely.
Add ½ cup of the powdered sugar to a light colored saucepan and heat over medium heat without stirring until the sugar dissolves and have a tan liquid on the bottom of the pan.. You can swirl it occasionally.
Continue cooking, about a minute, stirring to make sure the sugar has dissolved until it is a medium amber color. Don’t let it get too dark or it will taste burnt.
Add ½ cup cream, vanilla and salt, it will foam up. Whisk until the caramel has dissolved and it is smooth. Stir in the remaining 1 tablespoon cream. Pour into a glass bowl and allow it to cool. It will not be thick. You can place it in the refrigerator or freezer, you want it to be room temperature.
Once the caramel has cooled, add cream cheese and butter to a stand mixer and beat until creamy. Gradually add the powdered sugar and beat until smooth and creamy. Add the caramel and beat until combined. Refrigerate until it is spreadable.