Caramel Sauce

This is delicious served with puddings, sponge cake, angel food cake or ice cream, and keeps indefinitely in the refrigerator.

1 cup granulated sugar
1/4 pound butter
1 pint milk, heated
1 1/2 cups granulated sugar
2 heaping tablespoons all-purpose flour
1 teaspoon vanilla extract
Chopped pecans or almonds (optional)

Put sugar in a cast iron skillet and stir constantly over medium-low heat until it turns a golden brown. Add butter to browned sugar and mix thoroughly. Add the hot milk and cook until the sugar is dissolved. Add the 1 1/2 cups sugar mixed with the flour. Add enough extra milk to make a smooth mixture. Add vanilla extract and cook until thick. This may be served warm or cold. Chopped pecans or chopped almonds may be served on top of this sauce.