Real Madrid started off their European campaign with a perfect record in the group stage, becoming only the fifth team in the competition's history to secure all six wins at the opening stage.
They also have the upper hand when they host CSKA Moscow at the Bernabeu on Wednesday evening after coming away with a 1-1 draw in the frigid Russian weather a fortnight ago and Kaka believes that his side are capable of something special.
"We have seen that some big teams are already through," Kaka told AS. "I think that AC Milan and Barcelona have great chances of reaching the final.
"But I think that Madrid have a good chance of doing something big in the Champions League.
"We are confident we can reach the last eight, always respecting CSKA and knowing that they can create us a lot of trouble."
After spending most of his time out injured since joining Real Madrid in 2009, Kaka finally secured regular playing time this season and has forged an impressive partership with Mesut Ozil in the middle and the Brazilian was full of praise for his 23-year-old team mate.
"It is a pleasure for me to play with Ozil because he is a great player," Kaka explained. "I think it is very easy to play alongside him because he is very smart.
"He knows how to move, we know than when one of us is in a position, the other must take another place, always occupying the spaces on the field.
"So it is very easy to play with him, because he is very smart."
The 29-year-old then praised manager Jose Mourinho, who has recently denied that he is leaving Los Blancos despite interest from former club Chelsea.
"He is surely one of the best coaches I have ever had," Kaka added. "I learn a little bit with every coach. I have been learning a lot with Mourinho, so I think he is surely one of the best coaches I have played under."
Real Madrid host CSKA Moscow on Wednesday evening.