Step 1

Preheat the oven to 180°C. Grease 3 x 20cm round cake pans and line with baking paper.

Step 2

Place butter and sugar in a stand mixer fitted with the paddle attachment. Beat on high for 5 minutes or until pale and thick. Add vanilla and then eggs, 1 at a time, beating well after each. Add half the flour and beat on low to combine. Combine cocoa and milk in a bowl, then add to stand mixer and beat to combine. Add baking powder and remaining flour, and beat to combine, then divide batter among prepared pans.

Step 3

Bake for 1 hour or until a skewer inserted comes out clean. Set aside in pans to cool completely, then remove from pans and trim tops to level. When cool, brush each cake with 1/4 cup (60ml) Kahlua. Chill until ready to assemble.

Step 4

For frosting, place sugar and eggwhites in a heatproof bowl set over a pan of simmering water (don’t let the bowl touch the water) and stir until sugar dissolves. Transfer to a stand mixer fitted with the whisk attachment. Whisk on high for 10 minutes or until thick, glossy and cooled.

Step 5

Add butter, 1 piece at a time, whisking well after each addition. Continue to whisk until very thick, then whisk in milk powder, vanilla and 1 tsp salt until smooth.

Step 6

Transfer two-thirds frosting to a separate bowl and combine with chocolate chips and cacao nibs. Place 1 cake on a cake stand. Spread with 1 1/2 cups choc chip frosting, then top with another cake. Repeat, finishing with remaining cake.

Step 7

Spread plain frosting around cakes to seal in crumbs, then freeze for 10 minutes to set. Remove from freezer and spread with remaining choc chip frosting, scraping back with a palette knife to achieve a ‘naked’ effect.

Step 8

For caramel, place sugar and 2 tbs water in a saucepan over medium heat. Swirl to dissolve sugar, then cook for 6-7 minutes or until golden. Remove from heat, then carefully stir in butter and cream. Set aside to cool.

Step 9

Drizzle over cake, letting it drip down the sides. Cut into pieces to serve.