Preheat oven to 350 deg f. Grease an 20 cm square pan. Unwrap caramels and warm them on a plate for five minutes in the oven. From the batter ingredients: Beat together the sugar, butter and egg. Stir in the milk. Sift the flour, baking powder and salt together. Blend with egg mixture. Spread two third of the batter in prepared pan. One by One, pull the caramels into 10 cm long ribbons and press them into the batter. Place them a regular intervals. Spread the remaining batter over the top. Mix together the streusel ingredients and sprinkle over the batter. Bake for 40 to 45 minutes or until a pick comes out clean. Cut and serve warm.