1 (11 ounce) package butterscotch flavored chips, divided
2 cups all-purpose flour
1 3/4 cups granulated sugar
1 tablespoon baking powder
1 1/2 teaspoons ground cinnamon
1 teaspoon salt
1/2 teaspoon ground nutmeg
1 cup pure pumpkin
1/2 cup vegetable oil
3 large eggs
1 teaspoon vanilla extract
3 tablespoons confectioners' sugar (optional)

Preheat oven to 350 degrees F. Grease 12-cup Bundt pan.

Microwave 1 cup butterscotch chips in small, microwave-safe bowl on medium-high (70%) power for 1 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 morsels, pumpkin, vegetable oil, eggs and vanilla extract in large bowl with wire whisk. Stir in flour mixture. Spoon batter into prepared Bundt pan.

Bake 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 confectioners' sugar. Serve with Butterscotch Sauce.

Butterscotch Sauce: Heat 1/3 cup evaporated milk in a medium, heavy-duty saucepan over medium heat just to a boil; remove from heat. Add remaining chips; stir until smooth. Return to heat. Stirring constantly. Bring mixture just to a boil; cool to room temperature; stir before serving.

Yields 24 servings.