1 3/4 c. flour
2 c. sugar
2 tsp. baking powder
1/4 tsp. baking soda
1 tsp. salt
1 1/2 c. milk
1 tsp. vanilla
3 eggs
4 squares unsweetened chocolate, melted
1/2 c. soft butter

Sift dry ingredients together; add butter, milk and vanilla. Beat for 2 minutes. Add eggs and chocolate, beat 2 minutes more. Bake 40 minutes at 350 degrees in 2 (9-inch) prepared pans. Cool cake completely.

FROSTING:

2/3 c. sugar
2 egg yolks
1/2 c. vanilla
1 c. chopped nuts
2/3 c. evaporated milk
1/3 c. shortening
1 1/3 c. flaked coconut

In medium saucepan, combine sugar, milk, egg yolks, and shortening; cook and stir over medium heat until mixture boils 5 minutes. Remove from heat and stir in coconut, vanilla and nuts. Frost top and between layers.