To make caramel syrup: Pour sugar in a heavy skillet.
Place over a moderate heat until sugar has melted and turned a rich caramel brown.
Add boiling water (there will be a lot of sputtering, so stand back) and cook a minute or two longer until syrup is slightly thickened.
Set aside and cool.
This caramel syrup makes enough to use for both batter and frosting.
To make the batter: Sift together flour, baking powder, and salt.
Set aside.
Work butter until soft, then add 3/4 cup sugar, a little at a time, and continue working the mixture until smooth.
In a separate bowl, beat egg yolks thoroughly, then beat in remaining 3/4 cup sugar until creamy.
Stir yolk mixture into creamed butter along with the 4 tablespoons caramel syrup.
Mix in flour combination, alternating with milk and beginning and ending with flour.
Last of all, fold in egg whites beaten until they stand in peaks.
Divide batter into 2 well greased and floured 8 inch cake pans.
Bake in a preheated 375° oven for 20 to 25 minutes or until cake shrinks from sides of pan.
Remove from pans and cool on cake rack.
To make frosting: Put all ingredients, except almond extract, in the top of a double boiler and mix well.
Place over rapidly boiling water and cook, beating constantly with a rotary or electric beater for exactly 7 minutes.
Remove from heat, add almond extract, and beat until frosting is thick enough to spread.
When cake is cold, spread frosting between layers, around sides, and over the top.
Makes enough frosting to spread generously.