Cake:

1 pkg. German sweet chocolate
1/2 c. boiling water
1 c. butter
2 c. sugar
4 egg yolks, unbeaten
1 tsp. vanilla
2 1/2 c. sifted flour
1 tsp. baking soda
1 tsp. salt
1 c. buttermilk
4 egg whites (stiffly beaten)

Melt chocolate in boiling water. Cool. Cream butter and sugar until light and fluffy. Add egg yolks one at a time beating after each. Add vanilla and chocolate, mix well.

Sift flour, soda and salt. Alternately add sifted dry ingredients and butter milk to chocolate. Mix after each addition. Fold in stiffly beaten egg whites. Pour batter in pans lined on the bottom with paper.

Bake 350°F for 30 to 40 minutes.

Frosting:

1 c. evaporated milk
1 c. sugar
3 egg yokes, slightly beaten
1 stick of butter
1 tsp. vanilla
1 1/3 c. coconut
1 c. nuts (walnut or pecans)

Combine milk, sugar, egg yokes, butter and vanilla in pan. Cook over medium heat, stirring constantly until mixture thickens (approximately 12 minutes). Remove from heat and add coconut and nuts. Frost cake.