1 (6 oz.) pkg. chocolate chips
1/4 c. water
2 1/4 c. flour
1 tsp. baking soda
3/4 tsp. salt
1 3/4 c. sugar
3/4 c. butter
1 tsp. vanilla
3 eggs
1 c. water

Melt chips in microwave with 1/4 cups water. Set aside to cool. Sift flour, soda and salt together and set aside. In mixer bowl, cream together the sugar, butter and vanilla. Mix until very creamy. Add 3 eggs, one at a time. Add melted chocolate. Mix well. Alternately add flour, 3 or 4 tablespoons at a time, then about 1/3 cup water, then flour, water; until water and flour are blended well into the creamed mixture. Divide the batter in thirds and pour into 3 small greased and floured 9 inch cake pans. Bake 20 to 25 minutes at 350 degrees. Take out of oven. Let set in pans about 5 minutes; then on a cooling rack, removed from pans.

FROSTING:

1 (6 oz.) pkg. chocolate chips
1/4 c. milk
2 tbsp. butter
1 tsp. vanilla
Dash of salt

Combine these ingredients and melt in microwave or on stove top. Remove pan from stove and add:

Beat with mixer until creamy. Frost between cake layers and top and sides. Then sprinkle chopped pecans on top.