1 (8 oz.) carton sour cream
1/4 c. milk
1 c. butter, softened
2 c. sugar
4 eggs
2 3/4 c. all-purpose flour
2 tsp. baking powder
1/2 tsp. salt
1 tsp. vanilla extract
1 tsp. rum extract (optional)
Caramel Frosting

Combine sour cream and milk. Cream butter; gradually add sugar, beating well at medium speed of an electric mixer. Add eggs, one at a time, beating well after each addition. Combine flour and next 2 ingredients; add to creamed mixture alternately with sour cream mixture, beginning and ending with flour mixture. Mix after each addition. Add flavorings. Pour batter into 2 greased and floured 9 inch round cake pans. Bake at 350 degrees for 30 to 35 minutes or until a wooden pick inserted in center comes out clean. Cool in pans 10 minutes; remove and cool completely on wire racks. Spread Caramel Frosting between layers and on top and sides. Yield: One (2 layer) cake.

CARAMEL FROSTING:

3 c. sugar, divided
1 tbsp. all-purpose flour
1 c. milk
3/4 c. butter
1 tsp. vanilla extract