Caramel Christmas Cake
| ²/₃ c | butter, softened |
| 1¹/₃ c | sugar |
| 3 | eggs |
| 2¼ cups | sifted cake flour |
| ½ tsp | salt |
| 2 tsp | baking powder |
| ²/₃ c | milk |
| 1 tsp | vanilla extract |
Cream butter; gradually add sugar, beating until fluffy. Add eggs, one at a time, beating well after each addition. Combine flour, salt, and baking powder; add to creamed mixture alternately with milk, beginning and ending with the flour mixture. Stir in vanilla.
Pour batter into two greased and floured 9-inch round cake pans. Bake at 350 degrees for 25–30 minutes until a toothpick inserted in the center comes out clean. Cool in pans for 10 minutes. Remove from pans and cool completely.
Caramel Frosting
| ½ c | butter |
| 1 c | firmly packed brown sugar |
| 3 T | milk |
| 3 cups | powdered sugar |
| 1 tsp | vanilla extract |
| ¹/₃ c | chopped pecans or walnuts |
Melt butter in a medium saucepan. Add brown sugar and cook one minute over low heat. Stir in remaining ingredients except nuts and beat until smooth. Add more milk if necessary for proper spreading consistency. After frosting the cake, sprinkle chopped nuts on top.