2 c. sugar
1/2 c. butter
4 sq. melted chocolate
1 tsp. vanilla
4 egg yolks
1 1/2 c. sweet milk
2 c. flour
2 tsp. baking powder
1/2 tsp. salt

Cream together sugar and butter. Add chocolate, vanilla, egg yolks, and sweet milk. Sift together flour, baking powder, and salt. Add to creamed mixture and mix. Fold in 1 cup chopped nuts. Fold in the 3 beaten egg whites. Bake in moderate oven.

FROSTING:

1 lb. powdered sugar
1 egg
1 tsp. vanilla
3 chocolate squares
1/2 c. butter
1 tsp. lemon juice
1 c. nuts

Frost cake.