In a medium bowl, mix graham cracker crumbs, granulated sugar, and melted butter until it resembles wet sand. Press this mixture into a 9-inch pie dish evenly and chill for about 30 minutes.

In a separate bowl, whisk the instant butterscotch pudding mix with cold whole milk until thick—this should take around 2 minutes.

Beat the softened cream cheese, brown sugar, and vanilla extract together until smooth. Gradually pour in the heavy cream while beating until light and fluffy, about 3-4 minutes.

Gently fold the thickened butterscotch pudding into the cream cheese mixture until fully combined. Pour this filling into the chilled crust and spread it evenly.

Spread a generous layer of whipped cream over the filling, then drizzle with caramel sauce. Refrigerate the pie for at least 4 hours, ideally overnight.