Gather all ingredients. Preheat the oven to 350 degrees F (175 degrees C). Grease three 8-inch round cake pans and set aside.

Beat sugar and butter together in a large bowl with an electric mixer until light and fluffy. Add eggs one at a time, mixing well after each addition. Dissolve baking soda in water in a small bowl; stir into batter along with jam.

Combine flour, cinnamon, nutmeg, cloves, and salt in a medium bowl; stir into cake batter by hand, alternating with buttermilk. Fold in black walnuts and raisins until incorporated.

Divide batter equally between the prepared cake pans; spread in an even layer.

Bake in the preheated oven until the top of cakes spring back when lightly touched, about 35 minutes. Cool in the pans until cool enough to handle, then invert cakes over a wire rack and remove the pans to cool completely.

To make the caramel frosting: Beat butter in a mixing bowl until light and fluffy, 1 to 2 minutes. Add dulce de leche and beat until combined. Add confectioners sugar and beat until frosting is smooth and creamy.

Spread frosting between cooled cake layers and on sides and top of cake. Enjoy!