1 1/2 c. sugar
1/2 c. butter (scant)
1 c. cold water
2 eggs, beaten separately
2 1/2 c. flour
6 tsp. burnt caramel
2 tsp. baking powder
1 tsp. vanilla

Cream butter and sugar. Add yolks of eggs, then water and flour. Stir all together. Add caramel and vanilla. Beat 5 minutes. Add baking powder and stir again. Add egg white. Beat again and bake in layer pans.

How to burn caramel: Place 1 cup sugar in pan on stove and heat until sugar is melted and cooked into a brown syrup. Then place pan on back of stove and add 1/2 cup hot water and cook a few minutes, or until a syrup is formed.

ICING:

2 c. sugar
2-3 c. water
Lump of butter size of walnut
Enough burnt sugar syrup to give same color as that of the cake

Cook until it hardens in water, then add 2 or 3 tablespoons cream and beat until firm enough for icing cake.