In a small bowl combine Flour, Salt and baking powder.
In a large bowl cream together the butter and sugar until light and fluffy. Add the vanilla and milk, beat into butter and sugar mixture. Once well combined, add the dry ingredients and mix well with a wooden spoon - do not over mix.
Spread the batter evenly into a greased 8 x 8 square baking dish. Pour the caramel sauce over the top. (the sauce will float on the top of the batter).
Bake in 350 degree oven for 30-35 minutes (until toothpick comes out clean).
When serving, cut pieces and flip upside down so caramel sauce is on the top. This cake is great served warm with vanilla ice cream or just on it's own.