Add the softened cream cheese, powdered sugar (or white sugar), and ¼ cup of the caramel sauce to a large bowl.
Beat the cream cheese, caramel, and sugar together with an electric mixer on medium speed until smooth.
Spread the cream cheese mixture into the bottom of a medium baking dish (7.5 X 10” or 8X8”).
Pour the remaining 1 cup of caramel sauce on top of the cream cheese layer. Spread it out evenly, so all of the cream cheese is covered.
Sprinkle the surface of the caramel with the toffee bits.
Serve immediately, or refrigerate until needed (set it out at room temperature for 10-30 minutes before serving).
Serve with apple slices, graham crackers, gingersnaps, etc.
Notes
*Softening cream cheese: Allow the cream cheese to soften at room temperature for 15-60 minutes. For a quick and easy way to soften cream cheese, add the foil-wrapped block to a plastic freezer bag and seal well. Drop it into a bowl of hot water and allow to soak for 5 minutes. Storage: Wrap the dish tightly and store it in the refrigerator for up to 3 days. Allow to soften at room temperature for 10-30 minutes before serving if possible. To Make Ahead: Assemble the dip up to 24 hours in advance. Allow to soften at room temperature for 10-30 minutes before serving with apple slices, graham crackers, gingersnaps, etc.