Bloodlines and Caster LevelEdit

From Unearthed Arcana:

"Include the character's bloodline level when calculating any character ability based on his class levels (such as caster level for spellcasting characters, or save DCs for characters with special abilities whose DCs are based on class level)...If a character has levels in two or more classes in addition to his bloodline levels, each class gains the benefit of adding the bloodline levels when calculating abilities." --Unearthed Arcana, p19

This statement is used in a few situations to artificially increase a character's CL (or other level-dependent variable) beyond that which was intended by the rules. It seems clear that this section was never meant to be combined with prestige classes that provide "increases to caster level," thereby allowing the bloodline to perform "double duty" for purposes of advancing the character's CL.

Thus, the ruling: it is not possible to use a bloodline to advance a character's Caster Level, Manifester Level, Initiator Level, Binder Level, or any other special ability whose value is based on class level, to exceed the character's character level or hit dice.