THE REFEREE DID WHAT?! (CORRECTED)

Question:
In a high school varsity game played under USSF rules (as opposed to NHSF) the attacking team plays a ball that rolls into the penalty area and is picked up by the goalie. After the goalie has possession, a defender running with the attacker chasing the ball plays the body and bumps the attacker in a significant manner. The referee (I was the AR) gave the defender a caution for UB, and then allowed the goalie to punt to continue play.

We discussed after the game as to whether, after the caution, he should have awarded the attacking team a penalty kick, an indirect free kick from the spot of the contact, or whether letting the goalie punt was appropriate.

We’d appreciate your feedback.

USSF answer (September 20, 2011):
The correct course of action would have been to stop play for the foul by the defender, to caution the defender for unsporting behavior and restart with a penalty kick. However, in this case, the referee did not stop play and appears to have cautioned the defender “on the fly,” not something that is in accordance with the Laws of the Game. This shows either ignorance of the Law or willful disregard of the Law by the referee.