Beat the cream cheese using an electric mixer until completely smooth. Then, beat in the butter followed by the caramel sauce, beating only until just combined.

Add in the powdered sugar and mix on the lowest speed possible, mixing just until everything is thoroughly combined. You don't want to over-mix, otherwise the frosting will end up runny.

This frosting is thick enough that you can pipe it or spread it. This is bound to become your new favorite frosting!