Butterscotch Pumpkin Cake

1 package (11 oz) Butterscotch flavored morsels
2 cups flour
1 3/4 cups sugar
1 tablespoon baking powder
1 1/2 teaspoons ground cinnamon
1 teaspoon salt
1/2 teaspoon ground nutmeg
1 cup canned pumpkin
1/2 cup vegetable oil
3 eggs
1 teaspoon vanilla extract
1/3 cup evaporated milk
confectioners sugar, optional

In a small mocrowave-safe bowl, microwave 1 cup morsels on medium power for 1 minute; stir. Microwave at additional 10-20 second intervals stirring until smooth. Cool to room temp. In a medium bowl, comine flour, sugar, baking powder, cinnamon, salt and nutmeg. In a large bowl, stir together melted morsels, pumpkin, oil, eggs and vanilla with a wire whisk. Stir in flour mixture. Spoon batter into a greased 10 in. fluted tube pan. Bake at 350 degrees for 40-50 mins or until toothpick comes out clean. Cool in pan on wire rack for 30 minutes; remove to wire rack to cool completely. Sprinkle cake with confectioners sugar if desired. In a medium heavy-duty saucepan, heat evaporated milk over medium heat just to a boil; remove from heat. Add remaining morsels; stir until smooth. Return to heat. Stirring constantly, bring mixture just to a boil. Cool to room temperature (I actually prefer it warm). Stir before serving. Serve cake with butterscotch sauce (it soaks in pretty fast, so it's best to put it on after you slice the cake, just before you serve it).