1/2 c. peanut butter chips
1/2 tsp. baking powder
1 1/4 c. sugar
1 1/2 c. milk
2 c. flour
1/4 tsp. salt
2 eggs
3/4 c. coconut, toasted (optional)
1 tsp. baking soda
1/2 c. butter, softened
1 tsp. vanilla

Preheat oven to 350 degrees. Melt over hot water, 1/2 cup peanut butter chips; stir until smooth. Set aside. In a small bowl, combine flour, baking soda, baking powder and salt; set aside. In a large bowl, combine butter and sugar; beat until creamy. Blend in melted peanut butter chips. Beat in eggs and vanilla. Alternately blend in flour and milk.

Pour into a greased and floured 9 x 13 inch pan or two 8 inch pans. Bake until golden brown for about 35-40 minutes. Cool and freeze. Garnish with coconut if desired.

PEANUT BUTTER CREAM FROSTING:

1 c. peanut butter chips
1 tsp. vanilla
3 c. powdered sugar
1 (8 oz.) pkg. cream cheese, softened
1/8 tsp. salt
2 tbsp. milk

Melt over hot water, 1 cup peanut butter chips; stir until smooth in a large bowl. Combine melted chips, cream cheese, vanilla and salt; beat well. Beat in powdered sugar alternately with milk until mixture is of spreading consistency. Spread on cooled cake.