1/2 c. sugar
1/4 c. hot water
1/2 c. butter
1 1/2 c. sugar
3 eggs, separated
1 c. milk
2 c. flour, sifted
1/2 c. flour
2 tsp. baking powder

In heavy skillet, heat and melt sugar until very brown; add hot water and let stand. In a large bowl, mix butter, sugar and egg yolks. Add milk, alternating with flour; beat 5 minutes. Add 1/2 cup flour and baking powder and mix well. Fold in beaten egg whites and caramelized sugar. Pour into 3 greased and floured pans. Bake at 350 degrees for 30 minutes.

CARAMEL CAKE ICING:

2 c. sugar
2 tbsp. butter
1 c. cream
1 tsp. vanilla
1 c. pecans, chopped