Preheat oven to 350°F. Coat three 8x2 inch round cake pans with nonstick cooking spray. Line the bottoms with parchment paper and spray the paper with nonstick spray.
In a medium bowl, whisk together the flour, baking powder, cinnamon, and salt. Set aside.
In a large bowl, use a mixer with a wire whisk attachment to beat the butter, brown sugar, and sugar about 3 minutes until fluffy and creamy.
On low speed, add the eggs one at a time, stopping to scrap the bowl as needed.
Beat in the flour mixture in 3 batches, alternating with apple butter in between. Mix until just blended.
Manually stir in the walnuts and raisins until well incorporated.
Divide the batter between the 3 prepared cake pans, gently tapping to level the tops.
Bake for 30 minutes or until a wooden toothpick inserted into the center comes out clean. Remove pans from the oven and let cool on a wire rack for 10 minutes.
Run a knife around the sides of the cakes and invert the cakes onto the rack. Remove and discard the parchment paper. Cool cakes completely before frosting.
Frosting In a large bowl, use a mixer with a wire whisk attachment to mix together the sugar and butter on low speed until well blended.
Add vanilla extract and Dulce de Leche, then mix until well combined. Stop to scrape the sides of the bowl as needed. Increase the speed to medium and beat the batter for 3 minutes.
Assembling Place a cake layer onto a cake platter and spread 3/4 cup of frosting. Top with another cake layer and more frosting. Add the third cake layer and use the remaining frosting to spread on the top and sides of the cake. Refrigerate until ready to serve.
Just before serving, sprinkle shredded coconut on the top and sides of the cake. Then drip caramel sauce on the edge of the top cake layer.