2/3 c. butterscotch morsels
1/4 c. water
2 1/4 c. flour
1 tsp. salt
1 tsp. baking soda
1/2 tsp. baking powder
1 1/4 c. sugar
1/3 c. shortening
3 unbeaten eggs
1 c. buttermilk or sour milk

Melt butterscotch morsels in water in saucepan. Cool. Sift flour, salt, soda, and baking powder; set aside. Gradually add sugar to shortening; cream well. Blend in unbeaten eggs. Blend in melted morsels. Mix well. Add dry ingredients alternately with buttermilk or sour milk. Put in two 9-inch round layer pans, well greased and floured bottoms. Bake at 375 degrees for 25-30 minutes.

BUTTERSCOTCH FILLING:

1/2 c. sugar
1 tbsp. cornstarch
1/2 c. evaporated milk
1/2 c. butterscotch chips
1 beaten egg yolk
2 tbsp. butter
1 c. coconut
1 c. nuts

Combine sugar, cornstarch, evaporated milk, butterscotch chips, and beaten egg yolk. Cook, stirring constantly, until thick. Remove from heat, add butter, coconut, and nuts.