Grandma's Caramel Frosting

Really good on spice cake. 

½ cup sugar           
¼ cup hot water
1/3 stick margarine           
1/3 cup sego evaporated milk
½ cup brown sugar                                               
1 teaspoon vanilla
Powdered sugar

Caramelize sugar. Add hot water. Add stick margarine, evaporated milk, and brown sugar. Bring to a boil. Cook for about 3 minutes until slightly thickened. Cool. With electric beaters, whip in vanilla and add powdered sugar to reach desired consistency. 

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