Preheat oven to 350 degrees. Grease and flour 12 cup fluted Bundt pan.
Beat cake mix, dry pudding, water, eggs and oil in a large bowl until well blended 2-3 minutes. Stir in chopped apple and pour into prepared pan.
Bake for 50 minutes or until a toothpick comes out clean. Cool 20 minutes; remove from pan and cool completely on wire rack.
Microwave caramels and milk for 1 1/2 minutes, stirring every 30 seconds. Cool about 10 minutes until slightly thickened. Drizzle over cake. Sprinkle with toffee bits. Serve with dollop of whipped cream.