In saucepan over medium heat, cook brown sugar, butter and 1 tsp water, stirring until sugar is dissolved, about 2 minutes. Scrape into greased parchment paper-lined 9 inch square cake pan. Arrange raspberries on top of sugar mixture.
In large bowl, beat together butter, granaulated sugar and brown sugar until fluffy; beat in eggs and vanilla. In small bowl, whisk together flour, baking powder and baking soda. Stir into butter mixture alternately with milk, making three additions of flour mixture and two additions of milk. Scrape into pan over raspberries smoothing top.
Bake in 350 F oven until cake tester inserted in centre comes out clean, about 35 minutes. Let cool in pan on rack for 10 minutes. Meanwhile, mix icing sugar with 2 tsp water. Invert warm cake onto serving plate; remove parchment paper. Drizzle with icing.
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