3 sq. (3 oz.) unsweetened chocolate
1 c. water
1/2 c. butter
1 tsp. vanilla extract
2 c. granulated sugar, divided
3 lg. eggs, separated
2 1/2 c. sifted cake flour
1/2 tsp. salt
1 c. sour cream
1 1/4 tsp. baking soda
1 tsp. red food coloring (optional)
Cocoa for dusting pans

CHOCOLATE FROSTING:

1/4 c. butter
2 sq. (2 oz.) unsweetened chocolate
Dash salt
1 tsp. vanilla extract
1 box (16 oz.) confectioners' sugar, sifted
5 tbsp. (approx.) evaporated milk

Combine chocolate and water in small saucepan. Bring to boil and cook over low heat until chocolate is melted. Stir to blend. Remove from heat and set aside.

Cream butter, vanilla and 1 1/2 cups sugar until light and fluffy. Add egg yolks and beat well. Sift flour and salt three times. Add to butter mixture alternately with sour cream. Blend well after each addition until smooth.

Sprinkle baking soda over chocolate and blend well. Add to creamed mixture and blend thoroughly. Add red coloring, if desired.

Whip egg whites, which have been warmed to room temperature in nonplastic bowl, until soft peaks are formed. Gradually add remaining sugar, a tablespoon at a time, and continue to beat until stiff, but still shiny, peaks are formed.

Add large spoonful meringue to cake batter and beat in. Add remaining meringue to batter and gently fold in with rubber spatula. Spoon batter evenly into 3 lightly greased and cocoa-dusted round 8 or 9 inch layer pans. Let set in pans 5 minutes before placing in oven. Preheat oven to 350 degrees F.

Bake in oven 40 to 45 minutes, or until cake tests done when toothpick is inserted in middle. Remove from oven and cool in pans 5 minutes before removing to wire rack to cool completely. Frost when cold.

Frosting: Melt butter and chocolate in saucepan over very low heat or in top part of double boiler over hot, not simmering, water. Stir in salt and vanilla. Blend in sugar and enough milk to make smooth, spreading consistency, beating well after each addition.

Frost cake, using about 1/3 the frosting between layers and the rest on sides and top. Store cake in refrigerator until served.