CAKE:

4 oz. white chocolate
1/2 c. hot water
1 c. butter
1 c. sugar
4 egg yolks
1 tsp. vanilla
1 c. chopped walnuts or pecans
2 1/2 c. sifted cake flour
1 tsp. baking soda
1 tsp. salt
1 c. buttermilk
4 egg whites, stiffly beaten
1 c. flaked coconut

ICING:

2/3 c. evaporated milk
1 c. sugar
1/4 c. butter
1 tsp. vanilla
3 egg yolks
1 c. flaked coconut
1 c. chopped nuts

CAKE: Melt the chocolate in the 1/2 cup of hot water. Cool. Cream together the butter and sugar until fluffy. Beat in the egg yolks, one at a time, beating well after each addition. Add the cooled chocolate mixture and vanilla. Sift in the flour, soda and salt alternately with buttermilk. DO NOT OVER BEAT!

Fold in the stiffly beaten egg whites. Gently stir in the nuts and coconut. Bake in three 9-inch layer pans, greased and floured or other pans of your choice. Bake at 350 degrees for 25-30 minutes. Do not over bake. Cool layers completely before frosting.

ICING: Combine the milk, sugar, butter, vanilla and egg yolks. Cook over low heat, stirring about 15 minutes. Remove from heat and add coconut and nuts. Beat until creamy.