Microwave 1 cup butterscotch chips in a small, microwave-safe bowl on medium-high (70%) power for one minute; stir. Microwave at additional 10- to 20-second intervals, stirring until smooth. Cool to room temperature.
Combine flour, granulated sugar, baking powder, cinnamon, salt and nutmeg in medium bowl. Stir together melted chips, pumpkin puree, vegetable oil, eggs and vanilla extract in large bowl with wire whisk. Stir in flour mixture. Spoon batter into greased 10-inch bundt pan.
Bake in preheated 350 degree F oven for 40 to 50 minutes or until wooden pick inserted in cake comes out clean. Cool in pan on wire rack for 30 minutes. Remove to wire rack to cool completely. Sprinkle with powdered sugar (optional). Serve with butterscotch sauce.
To prepare butterscotch sauce: heat 1/3 cup evaporated milk in medium, heavy-duty saucepan over medium heat just to boil; remove from heat. Add remaining chips, stir until smooth. Return to heat; stirring constantly, bring mixture just to boil. Cool to room temperature. Stir before serving.
Ingredients for pie:
Ingredients for butterscotch sauce:
Source: from the libby pumpkin site
