Neina, here's one where the frosting is made that way....

YELLOW CAKE WITH CARAMEL ICING

2 1/2 cups sugar
1 cup butter, softened
1/4 cup Crisco vegetable shortening
5 eggs
3 cups flour, sifted
1 tsp. baking powder
1/8 tsp. salt
1 cup milk
2 tsp. vanilla flavoring
2 tsp. lemon flavoring
Caramel Icing (recipe follows)

Preheat oven to 325 degrees F. Grease a tube pan.

Cream sugar, butter, and Crisco together. Mix in eggs; set aside.

Combine flour, baking powder, and salt and add to creamed mixture, alternately with milk. Add flavorings. Pour into prepared pan.

Bake at 325 degrees F for 1 hour and 15 minutes. Remove cake from pan while still warm. Top with Caramel Icing.

CARAMEL ICING

2 1/2 cups sugar
1 cup milk
1 stick (1/2 cup) butter
1/2 cup water
1 tsp. vanilla

Put 2 cups sugar, milk, and butter in saucepan; let it get hot.

Put the remaining 1/2 cup sugar and 1/2 cup water in an iron skillet and cook, while stirring, until caramelized.

Add the caramelized sugar to the milk mixture and cook until it forms a soft ball when dropped in cool water.

Add vanilla and beat.