Step 1
Cream butter and sugar until light and fluffy. Add vanilla. Add whole eggs, one at a time, beating after each addition. Sift flour 2 times and then measure and sift with baking powder and salt. Add flour and milk alternately, starting and ending with flour. Pour into two 9 inch cake pans which have been greased and lined with waxed paper. Bake approximately 30 minutes at 350 degrees. Preheat oven 10 minutes.
Step 2
Caramel Icing
You'll need:
3 c. granulated sugar
large pinch of baking soda
1 qt. sweet milk
1/2 stick butter
1 tsp. vanilla
Step 3
Mix sugar, baking soda and milk well; cook slowly for 2 hours. It is done when a small amount forms a soft ball when dropped in cold water. When done, add butter and beat a few minutes. Set aside to cool for about 15 minutes, then add vanilla and beat until of spreading consistency.