In a mixing bowl, cream the butter well, then cream in the sugar until fluffy. Beat in the eggs and the pumpkin. Sift the dry ingredients together and stir in alternately with the milk. If using an electric mixer, add the dry ingredients and milk and turn to lowest speed; push down the batter from the sides of the bowl with a rubber spatula, and mix just until the batter is smooth. Add the nuts and turn into a greased and floured sheet cake pan 11x14x2 inches or two 8 or 23 cm layer cake pans, greased and floured. Bake in a preheated 180ºC . oven about 35 minutes for a sheet cake or -0ºC or layers, or until the cake springs back when pressed lightly in the center. Cool 5 minutes on a rack, loosen from the pan, and turn out onto the rack to cool. Frost with Caramel Frosting. FROSTING: In a saucepan over low heat, bring the sugar and cream to a boil. Cover the pan and cook the mixture 3 minutes. Remove the cover and continue cooking until the mixture reaches 236 to 240 degrees. Remove the pan from the heat and stir in the butter, salt, and vanilla. Cool to lukewarm, then beat until the mixture is creamy smooth and of spreading consistency. This recipe provides sufficient frosting for a 23 cm two-layer cake or the equivalent.