Preheat oven to 400 degrees.
1. To make caramel sauce, melt butter in a cast iron skillet or an ovenproof skillet over medium high heat. When butter is hot and bubbly, add brown sugar, stirring constantly until sugar melts. Stir in water and vanilla extract. Bring to a boil, and then reduce heat while making dumplings.
2. In a medium bowl, combine flour and sugar. Stir in 3 TBS melted butter and milk; mix well.
3. Remove skillet with caramel sauce from heat. Drop dough by tablespoonfuls into the hot caramel in the skillet. Spoon some of the caramel over each dumpling.
4. Bake for 20 to 25 minutes or until dumplings are lightly browned.
5. To serve, spoon dumplings and the caramel into individual serving dishes. If desired, top with whipped cream and/or chopped pecans.
Yields 8 servings.
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