1/2 c. water
1/2 c. sugar
2 squares chocolate
1 egg
3/4 c. butter
1 c. sugar
2 unbeaten eggs
3/4 c. milk
2 c. regular flour
2 tsp. baking powder
2 tsp. vanilla flavor

Cook water, sugar, chocolate and egg until custard. Cream together butter and sugar; add eggs. Add remaining ingredients. Bake cake at 350 degrees for 45 minutes to 1 hour. FROSTING: Bring 2 squares chocolate, 2 tablespoons butter, 1 1/2 cups sugar and 1/2 cup milk to boil very slowly. Test to form soft ball. Beat until cool.