To a large mixing bowl, add the softened cream cheese, sifted powdered sugar and vanilla extract. Beat on medium-high speed, using an electric mixer, for 1-2 minutes or until smooth and fluffy. Scrape the sides and bottom of the bowl with a rubber spatula to ensure that all the ingredients are well combined and no lumps of cream cheese remain.
Transfer the cream cheese mixture to a small (approximately 1-quart sized) serving dish and spread it out evenly.
Top the cream cheese mixture with the caramel dip and smooth to create an even layer of caramel dip.
Sprinkle the english toffee bits evenly over the caramel dip.
Serve the caramel apple dip at room temperature alongside a tray of sliced red and green apples.
Notes
Serve immediately or chill slightly. If chilling, let it sit out for about 15-20 minutes before serving to return closer to room temperature for best dipping consistency.