Chocolate Cake with Pecan Caramel Sauce

Heat oven to 350 °F (175°C). Grease bottom only of an 8-inch square baking pan. For Cake: In medium bowl, mix together sugar, flour, cocoa, baking powder and salt. Add oil, milk, eggs and vanilla; beat until smooth. Pour batter into prepared pan. Bake 35 to 40 minutes or until wooden pick inserted in center comes out clean. Cool completely in pan on wire rack. For Pecan Caramel Sauce: In small saucepan, combine caramels and water and cook over low heat, stirring occasionally, until smooth and blended. Stir in pecans; cool until thickened slightly. Serve cake with warm caramel nut sauce spoon atop and vanilla ice cream alongside, if desired.