Caramel Apple Dumplings

2 tablespoons butter or margarine
1 1/2 cups brown sugar
1 1/2 water

Dumplings:
1 1/4 cups flour
1/2 cup sugar
2 tsp. baking powder
1/2 tsp. salt
1/2 cup milk
2 tablespoons butter or margarine
2 tsp. vanilla
1/2 cup chopped apple

In a skillet, heat the unsoftened butter, brown sugar and water to boiling. Reduce heat to simmer. Meanwhile, mix together all dumpling ingredients. Drop by tablespoonfuls into the simmering sauce. Cover tightly and simmer 20 minutes. Do not lift lid. Serve with ice cream if desired.