Caramel Apple Dumplings

2 tablespoons butter or margarine
1 1/2 cups brown sugar
1 1/2 cups water

Dumplings:
1 1/4 cups all-purpose flour
1/2 cup granulated sugar
2 teaspoons baking powder
1/2 teaspoon salt
1/2 cup milk
2 tablespoons butter or margarine
2 teaspoons vanilla extract
1/2 cup chopped apple

In a skillet, heat the butter, brown sugar and water to boiling. Reduce heat to simmer.

Meanwhile, mix together all dumpling ingredients. Drop by tablespoonsful into the simmering sauce. Cover tightly and simmer 20 minutes. Do not lift lid.

Serve with ice cream if desired.