Preheat oven to 350°F (175°C). Line an 8x8-inch square pan with parchment paper and lightly spray with nonstick spray. If using metal binder clips, clip two opposite sides to keep the parchment in place. Set aside.
In a large bowl, whisk together brown sugar and oil for about 2 minutes until well combined.
1 cup packed dark brown sugar, ½ cup vegetable or canola oil
Add eggs one at a time, whisking well after each addition.
3 large eggs
Stir in applesauce and vanilla extract until smooth.
½ cup smooth unsweetened applesauce, ¾ teaspoon pure vanilla extract
In a separate bowl, sift together flour, baking powder, baking soda, salt, cinnamon, and ginger.
Gradually fold dry ingredients into the wet mixture until just combined—do not overmix.
Fold in grated carrots until evenly distributed.
2 cups finely grated carrots
Pour batter into prepared pan and smooth the top.
Bake for 30–35 minutes, or until a toothpick inserted into the center comes out clean.
Let cool in the pan for 10 minutes, then let cool completely before frosting.
Make the Caramel Sauce:
In a medium saucepan (at least 2-quart capacity), combine sugar, water, and corn syrup.
1 cup granulated sugar, ¼ cup water, 3 tablespoons light corn syrup
Heat over medium without stirring. Let the mixture come to a boil and cook for 5–7 minutes, or until it turns a deep amber color. Watch closely—it can burn quickly!
While the sugar is cooking, warm the cream in the microwave for about 1 minute.
¾ cup heavy cream
Once the sugar mixture is golden, remove from heat and carefully pour in the warm cream. It will bubble up—this is normal. Stir gently until smooth.
Transfer to a heat-safe bowl. Add vanilla, salt, and butter. Let the butter melt, then stir until fully combined.
2 teaspoons pure vanilla extract, 1 tablespoon unsalted butter, 1 teaspoon salt
Let cool to room temperature before using. The caramel will thicken as it cools.
Make the Frosting:
In a stand mixer fitted with the paddle attachment, beat butter and cream cheese on medium-high for 2–3 minutes until light and fluffy. Scrape down the sides of the bowl.
½ cup unsalted butter, 4 oz cream cheese
Add vanilla, salt, and chai spices. Mix to combine.
2 tablespoons heavy whipping cream, 1 teaspoon pure vanilla extract, Pinch of salt, 1 teaspoon cinnamon, 1 teaspoon ground ginger, ½ teaspoon cardamom, ½ teaspoon allspice, ½ teaspoon nutmeg, ⅛ teaspoon ground cloves, ¼ teaspoon cracked black pepper
Gradually add powdered sugar one cup at a time on low speed.
3 cups powdered sugar
Add heavy cream and beat on medium-high for another 2–3 minutes until smooth, fluffy, and spreadable. Scrape sides as needed.
Assemble the Cake:
Once the cake is completely cool, spread the chai cream cheese frosting evenly over the top using an offset spatula.
Spoon caramel sauce over the frosted cake and gently swirl it in with a knife or spatula.
Serve at room temperature or chilled. Store leftovers in an airtight container in the fridge.