1 1/2 c. sugar
1/2 c. boiling water
2 eggs, separated
1/2 c. butter, softened
1 tsp. vanilla
2 1/4 c. all-purpose flour
3 tsp. baking powder
1 tsp. salt
1 c. milk
Caramel frosting (below)

Heat 1/2 cup of the sugar in heavy 8-inch skillet, stirring constantly, until sugar is melted and golden brown. Remove from heat; stir in boiling water slowly. Cook over low heat, stirring constantly, until sugar lumps are dissolved. Add enough water to syrup, if necessary, to measure 1/2 cup; cool.

Heat oven to 375 degrees. Grease and flour two 9-inch or three 8-inch round layer pans. Beat egg whites in small mixer bowl on medium speed until foamy. Beat in 1/2 cup of the sugar on high speed, 1 tablespoon at a time; continue beating until very stiff and glossy. Do not underbeat.

Beat butter, remaining 1/2 cup sugar, the egg yolks and vanilla in large mixer bowl on low speed, scraping bowl constantly, 30 seconds. Beat on high speed, scraping bowl occasionally, 5 minutes. Beat in syrup. Beat in flour, baking powder and salt alternately with milk. Fold in meringue. Pour into pans.

Bake until wooden pick inserted in center comes out clean, 20 to 25 minutes. Cool 10 minutes; remove from pans. Cool completely. Fill layers and frost cake with Caramel Frosting. Arrange pecan or walnut halves around top edge of cake if desired. 14 servings; 390 calories per serving. If using self-rising flour, omit baking powder and salt.