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In a large saucepan, mix together the brown sugar and water, and bring to a boil.
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Reduce heat to low, and stir in 1 tablespoon of butter and 1/2 teaspoon of vanilla. Cover and set aside.
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In a separate bowl, stir the flour, white sugar, baking powder and salt together.
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Cut in 1/3 cup of butter by using a fork until the mixture has lumps no larger than crumbs.
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Make a well in the center, and pour in the milk and 1 teaspoon of vanilla all at once.
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Stir just until all of the dry mixture is absorbed.
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Return the sugar mixture to a full boil, and drop large spoonfuls of the batter into the syrup.
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Cover and simmer over medium heat, without removing the lid, for 15 minutes, or until a toothpick inserted into the largest dumpling comes out clean.
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Serve warm.
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May serve with ice cream if desired.