3/4 cup butter (1 1/2 sticks)
1 cup milk
2 cups sifted all-purpose flour
2 3/4 teaspoons baking powder
1/2 teaspoon salt
4 eggs
2 cups sugar
1 teaspoon vanilla extract
Caramel Icing:
One box light brown sugar (1-pound)
1/2 cup butter
7 tablespoons evaporated milk
1 teaspoon vanilla extract
Make the cake. Preheat oven to 325 degrees. Grease and flour 2 9-inch cake pans. In a small saucepan, cook the butter and milk over low heat until the butter melts. Stir well and let cool to room temperature. In a medium bowl, combine the flour, baking powder, and salt. Using an electric mixer, beat eggs and sugar on high speed until light yellow and smooth. Stir the flour mixture into the egg mixture just until combined. Add the cooled milk mixture and vanilla and stir well. Divide the batter between the two pans and bake 25 to 30 minutes, or until cake springs back when touched lightly in the middle. Place pans on a wire rack and let cool 10 minutes. Remove cakes from pans and let cool completely on racks. Make icing. In a medium saucepan with a heavy bottom, combine the brown sugar, butter, evaporated milk, and vanilla extract. Bring to boil over medium-high heat. Stir well and turn heat down so mixture boils gently. Cook for 7 minutes. Let cool for 5 minutes. Beat the icing with a wooden spoon for 2 to 3 minutes to thicken. Place bottom layer on a platter or cake stand. Working quickly before icing sets up, spread icing on top. Place second layer on top. Ice the top and sides. A knife dipped in hot water can help smooth the icing out.