Preheat the oven to 350 degrees.

Grease and flour 2 loaf pans.

In a medium bowl, mix together the flour, baking powder, baking soda and salt. Set aside.

In a large mixing bowl, cream together 3/4 cup butter, sugar, and vanilla until light and fluffy. Add the eggs to the mixture, beating in one at a time. Then add in both boxes of pudding mix and beat well until blended, scraping down the sides and bottom of bowl as needed.

Mix in the flour mixture and the buttermilk alternately, starting and ending with the flour.

Fill each loaf pan to about 1 1/4 inch full of cake batter. Sprinkle the butterscotch chips over the batter and top with remaining cake batter.

Bake for 45-55 minutes or until a toothpick inserted near the center comes out clean.

Cool the cakes on wire racks for 10 minutes, then remove from pans and cool completely.

To make the glaze: Heat 1/4 cup butter over medium heat for about 10 minutes or until browned.

Pour the butter into a small mixing bowl, leaving the browned sediment in the pan. While the butter is still hot, whisk in 2 heaping Tablespoons of butterscotch chips until completely melted and smooth.

Add the milk and vanilla and whisk again.

Lastly add the powdered sugar and whisk until completely dissolved and smooth. Drizzle over the cakes.