Streusel Caramel Coffeecake

Streusel Caramel Coffeecake

 3/4           cup  sugar
 1/4           cup  butter

1 egg
1/2 cup milk
1 1/2 cups flour
2 teaspoons baking powder
1/2 teaspoon salt
9 pieces Kraft caramels (candy)
1 cup brown sugar
1/4 cup flour
2 teaspoons cinnamon
1/2 cup butter
1 cup chopped walnuts (optional)

Preheat oven to 350F. Grease an 8" square pan. Unwrap caramels and warm them on a plate for five minutes in the oven.

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.