Grease and flour sheet pan. Preheat oven to 350.

2 c. flour
2 c. sugar
1 stick butter
1/2 c. liquid shortening
4 tbsp. cocoa
1 c. cold water
1/2 c. milk with 1 tbsp. vinegar
1 tsp. vanilla
1/4 tsp. salt
1 tsp. baking soda
2 eggs, beaten

Sift flour and sugar into a large mixing bowl. In a saucepan, combine butter, shortening, cocoa and cold water and bring to a boil. Pour over flour and sugar and mix well. Add milk, vanilla, salt, soda and eggs. Mix well and pour batter into prepared pan. Bake 25 to 30 minutes.

FROSTING:

1 stick butter
4 tbsp. cocoa
1/3 c. milk
1 tsp. vanilla
1 c. nuts
1 lb. powdered sugar

Combine butter, cocoa and milk in a saucepan. Bring to a boil. Remove from heat and add vanilla, nuts and sugar. Beat until smooth and spread over warm cake.