2/3 c. sugar
1/2 c. boiling water
1 1/2 c. sugar
1/2 c. butter
1/2 tsp. baking powder
2 eggs
1 c. cold water
1 tsp. vanilla
3 c. flour
1 tsp. baking soda

Burn the 2/3 cup sugar in a heavy skillet and add boiling water. Stir until smooth and cool. Save 2 tablespoons. Cream the 1 1/2 cups sugar and butter until creamy. Add the egg yolks and vanilla. Sift the dry ingredients 5 times and add to the mixture alternately with the cold water. Beat the egg whites until stiff and fold in last.

ICING:

2 tbsp. retained syrup
1/4 c. butter
1/2 c. cream
1 c. sugar

Combine retained syrup, butter, cream and sugar. Cook until it spins a thread. Spread this frosting over the Caramel Cake.