If you wanted to do this in older versions of Android, you had to go to Settings > Apps & visit every app one by one to clear cache data.
Here's how to do this in Android 4.2:
- Go to Settings > Storage.
- You'll see categorized information about your storage including the new Cached data section.
- Click on Cached data to clear it.
The screenshots below shows you how that looks like.
If you want to see detailed information about which app cache is taking the most space or you need a quicker way to clear the cache regularly, I recommend using App Cache Cleaner as it offers exactly that. It also has a one touch widget that you can use to clear all your app cache really quickly.