1/3 c. granulated sugar
1/4 c. boiling water
3/4 c. butter
1 1/4 c. sugar
3 eggs, unbeaten
3 c. sifted cake flour
3 1/2 tsp. baking powder
1 tsp. salt
1 c. milk
1 tsp. vanilla

Melt the 1/3 cup sugar in heavy skillet, stirring constantly until deep brown syrup is formed (caramelized). Remove from heat and slowly stir in boiling water. Set syrup aside to cool. Cream butter and sugar until light and fluffy. Add eggs one at a time, beating well after each addition.

Stir in 4 tablespoons cooled syrup. Sift together dry ingredients and add alternately with combined milk and vanilla, beginning and ending with dry ingredients. Beat until smooth. Pour into 2 (9 inch) layer pans lined with greased and floured brown paper.

Bake at 375 degrees for 25 minutes. Let stand in pans a few minutes, then remove to turn out. Peel off paper and cool on racks. Frost when cool.

CARAMEL FROSTING:

3 c. brown sugar, firmly packed
1 c. and 2 tbsp. light cream or half and half
1/2 stick butter
1 tsp. vanilla

Mix sugar and cream and cook over low heat to soft-ball stage (235 degrees on candy thermometer). Remove from heat, add butter and cool. Add vanilla and beat until frosting is spreading consistency. A little cream may be added if frosting becomes too thick. Spread between layers, on top and sides of cake.