Grease Bundt pan or 10 inch tube pan.
Combine butterscotch pieces, coffee and water in heavy 2-quart saucepan.
Cook over low heat, stirring constantly, until butterscotch pieces are just melted.
Do not boil.
Remove from heat; cool to lukewarm.
Cream butter in mixer bowl at high speed of mixer.
Gradually add sugar; continue creaming until light and fluffy.
At medium speed thoroughly blend in butterscotch mixture.
Combine flour with soda and salt.
Add dry ingredients and buttermilk.
Blend at low speed; beat 2 minutes at medium speed, scraping sides of bowl.
Add eggs, one at a time, beating 1 minute after each.
Pour batter into pan.
Bake at 350° for 55 to 60 minutes.
Cool 10 minutes; remove from pan.