2 c. brown sugar, packed
1 stick butter (1/2 c.)
2 eggs, well beaten
1 c. warm water
3 tsp. vanilla
4 tbsp. vinegar
1 tsp. baking soda
2 1/2 c. flour
1 tsp. nutmeg

Mix the sugar, butter, and eggs. Now mix the water, vanilla, vinegar, and soda; add to above mixture. Add remaining ingredients. Bake at 350 degrees for 30 to 35 minutes.

ICING FOR BUTTERSCOTCH CAKE:

1/4 c. butter
6 tbsp. cream
1 c. brown sugar
1 c. coconut

Cream and bring to a rolling boil the sugar, butter, and cream. Add coconut. Pour over cake. Bake until brown.