This recipe does not have enough powdered sugar in it. The cream cheese frosting recipe I use for Italian Cream Cake has 1 -8 oz. bar of cream cheese and 1 stick of margarine and 1 pound of powdered sugar. Even for this recipe using a whole stick of butter is too liquid. I only use 2-4 T. of oleo, then add 1/2 c. of flour and 1 pound of powdered sugar. The margarine and the powdered sugar are too much in the proportion of your recipe, especially to add caramel too. Anyway you might try less margarine and more powdered sugar. Beat it a long time with the cream cheese. If I can help you any further please let me know.