Preparation time: 20 mins
Cooking time: 1 hour 45 mins
Serves 8

1 1/2 cups sugar
1 1/2 cups water
250g butter, softened
1 1/2 cups brown sugar
4 eggs
2 1/4 cups self-raising flour, sifted
1/2 cup milk

Caramel Frosting
125g unsalted butter, chopped
1 1/2 cups pure icing sugar, sifted

Caramel walnuts
1 cup sugar
1 cup walnut halves,
roughly chopped

1 Put sugar in a shallow heavy-based pan over a low heat. Increase heat slightly and, without stirring, tilt pan to swirl sugar and caramel. Continue in this way for
12-15 minutes until all the sugar has dissolved and turns into a golden caramel.

2 Slowly add water to caramel and stir to combine. Bring to a simmer and cook
for 15-20 minutes or until syrup reduces to about half a cup. Pour into a heatproof jug and allow to cool.

3 Preheat oven to 180°C. Line base and sides of a 22 x 10cm loaf tin with baking paper. Cream butter and brown sugar in the small bowl of an electric mixer until light and fluffy. Beat in eggs, 1 at a time, until combined. Transfer mixture to a large bowl. Add flour, milk and one-quarter cup of the cooled caramel and, using a large metal spoon, gently fold in until combined.

4 Pour mixture into prepared tin and smooth top. Bake for 50-60 minutes or until a skewer comes out clean when inserted in the centre. Remove the cake from the oven and stand on a wire rack for 10 minutes before turning out to cool. Spread cake with Caramel frosting and top with Caramel walnuts.

5 To make Caramel frosting: Beat butter in a bowl with electric beaters until light and fluffy. Add icing sugar, about 2 tablespoons at a time, while continuing to beat. Drizzle in 2 tablespoons of remaining caramel sauce and beat until combined and creamy.

6 To make Caramel walnuts: Line an oven tray with baking paper. Put sugar in a shallow heavy-based pan over a low heat and allow to dissolve, tilting pan often. Bring to a gentle simmer for 7-10 minutes until syrup turns a light golden colour. Add walnuts and tilt pan to swirl caramel until nuts are coated. Pour onto prepared tray and leave to set. Break into pieces when firm.

Photo by Chris L Jones