Preheat the oven to 350°F (175°C).

In a bowl, combine the all-purpose flour, baking powder, and salt.

In a separate mixing bowl, beat the granulated sugar and softened unsalted butter until light and fluffy.

Add the eggs one at a time, mixing well after each addition.

Alternate adding the flour mixture and milk to the egg mixture, starting and ending with the flour.

Fold in the dulce de leche until evenly incorporated.

Pour the batter into a greased cake pan and bake for 30 minutes.

Allow the cake to cool before frosting.

For the frosting, beat the cream cheese until smooth, then gradually add the powdered sugar and vanilla extract.