The efficient distribution of stored information has become a major concern in the Internet which has increasingly become a vehicle for the transport of stored video. Because of the highly heterogeneous access to the Internet, researchers and engineers have argued for layered encoded video. In this paper we investigate delivering layered encoded video using caches. Based on a stochastic knapsack model we develop a model for the layered video caching problem. We propose heuristics to determine which videos and which layers in the videos should be cached. We evaluate the performance of our heuristics through extensive numerical experiments. We also consider two intuitive extensions to the initial problem. Keywords--Proxy Caching, Streaming Layered Video, Utility Heuristics, Stochastic Knapsack