1.Preheat oven to 180°C (160°C fan forced). Grease deep 20cm (8-inch) round cake pan.
2.Beat butter and sugar in small bowl with electric mixer until light and fluffy. Beat in egg then gradually add syrup, beat well. Transfer mixture to large bowl, stir in sifted dry ingredients and the water in two batches, stir until smooth. Pour into pan.
3.Bake cake about 1 hour. Stand cake in pan 5 minutes before turning, top-side up, onto wire rack to cool.
4.Make caramel icing. Combine butter and sugar in small saucepan, stir constantly over high heat, without boiling, until butter is melted and sugar dissolved. Add milk, stir a further 2 minutes. Remove from heat, gradually beat in sifted icing sugar and extract.
5.Top cake with icing. Sprinkle with a little extra cinnamon, if you like.
To get the decorative effect on the top of the cake, place a paper doily on the cake and sprinkle ground cinnamon over the top. Carefully remove the doily from the top of the cake.
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