2/3 c. butter, softened
1 1/3 c. sugar
3 eggs
2 1/4 c. sifted cake flour
1/2 tsp. baking powder
2/3 c. milk
1 tsp. vanilla extract

Cream butter, gradually add sugar until light and fluffy. Add eggs one at a time beating after each, combine flour, salt and baking powder, add to creamed mixture alternately with milk beginning and ending with flour mixture. Stir in vanilla. Bake in a 350 degree oven for 25 to 30 minutes. Cool before frosting.

CARAMEL FROSTING:

3 c. sugar, divided
3/4.c milk
1 egg, beaten
Pinch of salt
1/2 c. butter

Sprinkle 1/2 cup sugar in a heavy saucepan, place over medium heat, cook stirring constantly until sugar melts and syrup is light brown. Combine remaining 2 1/2 cups sugar and next 3 ingredients. Mix well, stir in butter. Stir in butter mixture into caramelized sugar.

Cook over medium heat stirring often 15 to 20 minutes until reaches thread stage 230 degrees on a candy thermometer. Cool 5 minutes. Beat to spreading consistency. Spread on cooled cake. Yields enough for one 2 layer cake.