6 oz. pkg. semi-sweet chocolate morsels
2 1/4 c. sifted flour
1 tsp. baking soda
3/4 tsp. salt
1 3/4 c. sugar
3/4 c. softened butter
1 tsp. vanilla
3 eggs

FROSTING:

1 (6 oz.) pkg. semi-sweet chocolate morsels
3 tbsp. butter
1/4 c. milk
1 tsp. vanilla
1/4 tsp. salt
3 c. sifted confectioners' sugar

Combine chocolate morsels and 1/4 cup water in saucepan. Stir over low heat until melted and smooth. Remove from heat. Sift flour, soda and salt together; set aside. Combine sugar, butter and vanilla in bowl; beat until well blended. Add eggs, one at a time, beating well after each addition. Blend in melted chocolate mixture. Stir in flour mixture alternately with one cup water. Pour into two greased and floured 9 inch layer cake pans. Bake in 375 degree oven for 30-35 minutes. Cool.

Frosting: Melt chocolate morsels and butter over hot not boiling water. Remove from water. Add milk, vanilla and salt; mix until well blended. Beat in confectioners' sugar gradually. Fill and frost Chocolate Velvet Cake.