Preheat oven to 375 degrees F (190 degrees C). Grease three 9 inch round cake pans.

In a small saucepan bring 1 cup of the water to a boil, slowly add 1/2 cup of the sugar and cook to a thick syrup.

Sift together the flour with the baking powder and salt.

In a large bowl, cream the butter or margarine with 1 1/2 cups of the sugar. Add the eggs one at a time, beating well after each addition.

In another bowl, combine milk and sugar/water mixture. Add the vanilla and mix well.

Add the sifted dry ingredients alternately with the milk mixture to the creamed butter or margarine mixture. Stir until just combined. Pour batter equally into three greased 9 inch round cake pans.

Bake for about 30 minutes at 375 degrees F (190 degrees C). When cool, glaze with burnt sugar syrup.

To Make Glaze: In a small saucepan bring 1 cup water to a boil, slowly add 1/2 cup of the sugar and cook to a thick syrup. Pour over top of cooled cake layers.