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Heat 1/2 cup of the sugar in heavy 8 inch skillet, stirring constantly, until sugar is melted and golden brown. Remove from heat, stir in boiling water slowly. Cook over low heat, stirring constantly until sugar lumps are dissolved. Add enough water to syrup, if necessary to measure 1/2 cup; cool. Heat oven to 375 degrees. Grease and flour two 9 inch or three 8 inch round layer pans. beat egg whites in small mixer bowl on medium speed until foamy. Beat in 1/2 cup of the sugar on high speed, one Tablespoon at a time; continue beating until very stiff and glossy. Do not under beat. Beat margarine, remaining 1/2 cup of sugar, the egg yolks and vanilla in large mixer bowl on low speed, scraping bowl constantly, 30 seconds. Beat on high speed, scraping occasionally, 5 minutes. Beat in syrup. Beat in flour, baking powder and salt alternately with milk. Fold in margarine. Pour into pans. Bake until toothpick inserted in center comes out clean, 20 to 25 minutes. Cool 10 minutes
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Caramel Frosting- Heat 2 Tablespoons margarine or butter in 2 quart saucepan until melted. Stir in 2/3 cup packed dark brown sugar, 1/8 teaspoon salt and 1/3 cup whipping cream of evaporated milk. Heat to boiling, stirring constantly. Remove from heat; cool to lukewarm. Stir in 2 1/3 to 2 1/2 cups powdered sugar gradually until of spreading consistency. Stir in 1/2 teaspoon vanilla.
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