Preheat oven to 350 degrees.

Combine the sugar, cocoa powder, applesauce, oil, eggs, and milk in a mixing bowl. In a separate bowl, combine the flour, salt, and baking powder. Add to the chocolate mixture and stir until combined. Pour into a greased 13x9-inch baking pan. Bake about 12 minutes. Place pan on wire rack.

Melt caramels and milk together over low heat until caramels are melted. This will take about 10 minutes, so be sure and stir almost constantly so the caramels don’t stick to the pan and burn. Pour over baked layer.

Combine flour, baking soda, and salt in a bowl; set aside. Mix butter and sugars in a mixing bowl and beat until creamy. Add vanilla and eggs. Gradually beat in flour mixture. Stir in chocolate chips and butterscotch chips. Drop by big spoonfuls and spread over caramel layer. Bake for 35-40 minutes. Cool completely on wire rack then chill in the refrigerator at least 1 hour before frosting.

Melt the butter and stir in the cocoa powder. Add vanilla. Alternately add milk and powdered sugar. Mix in a mixing bowl until smooth. Spread over cooled brownies. Cut into bars.