1/2 c. butter
1 1/2 c. sugar
3 eggs
1 tsp. vanilla
1/4 tsp. salt
2 c. flour
1 tsp. baking powder
2 c. chopped sauerkraut (rinsed and drained well)
1 tsp. baking soda
1/2 c. cocoa
1 c. chopped nuts
1 c. water

Mix all together and put in greased, floured bundt or loaf pan. Bake 350 degrees for 40 to 45 minutes. Cool.

FROSTING:

Melt over low heat the following:

1 (6 oz.) pkg. chocolate chips
4 tbsp. butter

Remove from heat and blend in:

1/2 c. sour cream
1 tsp. vanilla
1/4 tsp. salt

Gradually add powdered sugar to spreading consistency.