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Methods:
In mixing bowl, mix the butter and sugar until light and airy. Add eggs one by one, beating well after each addition. Incorporate vanilla extract. Combine flour, baking powder, baking soda, and salt; add to butter mixture alternately with sour milk, beating well after each addition.
Pour mixture into a greased and floured 10 inch tube mold. Bake at 350° until a toothpick inserted into the center comes out clean, 55-70 minutes. Allow 10 minutes to cool. Run a knife along the edges and central tube of the mold. Invert cake onto a rack over wax paper.
For the sauce, combine sugar, butter, and water in a small saucepan. Cook over medium heat until the butter is melted and sugar dissolves. Remove from heat; add vanilla extract.
Poke holes in the top of the hot cake; pour 1/4 cup of sauce over cake. Allow to stand until sauce is absorbed.