-----BATTER----- 3/4 c Sugar

1/4 c Butter

1 Egg

1/2 c Milk

1 1/2 c Flour

2 ts Baking powder

1/2 ts Salt

9 Caramels, kraft

-----STREUSEL TOPPING----- 1 c Brown sugar

1/4 c Flour

2 ts Cinnamon

1/2 c Butter

1 c Chopped walnuts, optional

Preheat oven to 350 deg f. Grease an 8" square pan. Unwrap caramels and warm them on a plate for five minutes in the oven. From the batter ingredients: Beat together the sugar, butter and egg. Stir in the milk. Sift the flour, baking powder and salt together. Blend with egg mixture. Spread 2/3 of the batter in prepared pan. One by One, pull the caramels into 4 " long ribbons and press them into the batter. Place them a regular intervals. Spread the remaining batter over the top. Mix together the streusel ingredients and sprinkle over the batter. Bake for 40 to 45 minutes or until a pick comes out clean. Cut and serve warm.