Make sure your can of condensed milk is sealed tight (not opened) and not dented.

Remove the paper label wrapper.

Use a large deep pot.

Place the can in the middle of the pot. Tilt the can horizontal position so that I have at least 2-3 inches above the can. If you pot is tall enough, you don’t have to tilt the can horizontal like the way I did.

Fill the pot with water, and make sure the water level is at least 2 inches above the can.

Bring the water to a boil. Then lower the heat to medium low and simmer for at least 3 hours. You don’t have to cover the pot as you can check the water level from time to time. You can cover with a lid if you wish. The longer you simmer, the thicker the consistency and the darker the sauce will be.

Remark: If you wish to speed up the simmering time, you can use a pressure cooker and cook for only 45 minutes.

I’ve done a comparison simmering it for 3 hours vs 4 hours. (see the outcome in the video)

When time is up, off the heat completely and leave the can in the hot water all the way until it is completely cool.

ALERT! DO NOT open the can when it is still hot, the sauce can splatter out, so be very careful.

Once the can is completely cool (I waited at least 2 hours), remove from the water.

Make sure the can is completely cool before opening it.

Here you can see a soft and smooth caramel sauce.

Preheat oven at 180°C/355°F.

Prep the pans, grease and flour them. Set aside.

Add vinegar into the milk. Give it a quick stir and let it rest for 5 minutes.

Sift all the dry ingredients (cake flour, baking powder, baking soda and salt)

In a large mixing bowl, add sugar and oil. Mix vigorously until well combined.

Add in the dulce de leche and vanilla extract. Mix vigorously until well combined.

Add in the milk mixture in a 3 batches, alternate with the sifted dry ingredients. Mix until combined.

Add in the sifted dry ingredients in a 3 batches, alternate with the milk mixture. Mix until combined, do not over mix. Switch to a spatula to mix and scrape the bowl to ensure even mixing.

Divide the batter evenly into the prepared 3 pans. Tap the pan on the table few times to release air bubbles.

Bake in preheated oven at 180°C/355°F for 25-30 minutes or until inserted skewer comes out clean.***

Remark: If you’re using just one pan for all the batter, bake in preheated oven at 180°C/355°F for 35-40 minutes or until inserted skewer comes out clean.

Let the cake cool completely. Trimming the dome surface is optional.

In a large mixing bowl of butter (just lightly softened), mix on high speed until creamy, fluffy and pale.

In another large mixing bowl of cream cheese, mix on medium speed to soften and break all the lumps, do not over mix.

Transfer all the cream cheese into the butter. Mix until combined.

Add in dulce de leche, mix on low speed until combined.

Add in the vanilla extract, mix on low speed until combined.