Cottage Pudding

1/4 cup butter or margarine
1/2 cup granulated sugar
1/2 teaspoon nutmeg
1 egg, beaten
1 cup milk
2 cups sifted flour
3 level teaspoons baking powder
1/2 teaspoon salt

Cream butter and sugar; add beaten egg. Sift flour, baking powder, nutmeg and salt together and add alternately with milk. Bake in ungreased 8-inch square pan for 30 minutes at 350 degrees F.

Serve while warm with Plain Sauce.

Plain Sauce:
1 cup water
1/2 cup granulated sugar
2 tablespoons flour
2 tablespoons butter
1 teaspoon vanilla extract

Mix flour and sugar; add water and boil 5 minutes. Remove from heat and add butter and flavoring. Beat until thick enough to spread.