Streusel-Caramel Coffee Cake
3/4 cup sugar
1/4 cup butter, softened
1 egg
1/2 cup milk
1 1/2 cups white flour
2 tsp. baking powder
1/2 tsp. salt
9 caramels
1 cup brown sugar
1/4 cup white flour
2 tsp. cinnamon
1/2 cup butter, melted
1 cup chopped walnuts
If you use store-bought caramels, soften them first by unwrapping them and placing them on a pan in a 350°F oven for about 5 minutes.
Preheat oven to 350°F. Grease an 8-inch square pan. Beat together the sugar, butter and egg. Stir in the milk.
Sift together the flour, baking powder and salt then blend into the butter mixture. Spread 2/3 of the batter in the pan. One by one, pull the caramels into 4-inch ribbons and press them into the batter with your fingers. Place them at regular intervals.
Mix together the brown sugar, flour, cinnamon, melted butter, and walnuts and sprinkle it evenly over the batter. Bake for 40 to 45 minutes or until a toothpick stuck in the center comes out clean. Serves about 10.