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I have found an issue with sinatra-cache not passing the :default_encoding to tilt, resulting in this error for utf-8 templates.
The solution I found is to add options[:default_encoding] ||= settings.default_encoding to the render method in templates.rb
options[:default_encoding] ||= settings.default_encoding
Fix issue #7
thanks to andiug for the issue and the fix:
Should be sorted now. Apologies for delay in fixing or addressing your issue.