Cranberry Christmas Cake with Butter Sauce

3 tablespoons butter
1 cup granulated sugar
1 teaspoon vanilla extract
1 cup milk
2 cups all-purpose flour
3 teaspoons baking powder
1/4 teaspoon salt
3 cups cranberries

Butter Sauce:
1 tablespoon all-purpose flour
1 cup granulated sugar
1/2 cup butter
1/2 cup cream
1 tablespoon vinegar
1 teaspoon vanilla extract

Cream together butter, sugar and vanilla extract. Add milk, flour, baking powder and salt. Fold in the cranberries last. Spread batter evenly in a greased 9-inch pan. Bake at 325 degrees F for 35 to 40 minutes. Serve warm with the butter sauce.

Butter Sauce: Mix flour and sugar. Place all ingredients except the vanilla extract in saucepan. Heat, beating well until hot and bubbly. Remove from heat; add vanilla extract. Serve warm over the Cranberry Christmas Cake.