3/4 c. blanched almonds (4 oz. pkg.)
5 squares semi-sweet chocolate
2/3 c. butter
3/4 c. sugar
3 eggs, separated
2/3 c. sifted flour
1/4 c. milk
1/2 tsp. vanilla

ICING:

5 squares semi-sweet chocolate
3 tbsp. milk
1/4 c. butter
1 c. confectioners' sugar
1/4 tsp. almond extract
Sliced almonds

Grind 3/4 cup almonds. Lightly grease a 9 x 2 inch layer cake pan. In top of double boiler, melt chocolate over hot (not boiling water). Preheat oven to 350 degrees. In large bowl, cream 2/3 cup butter until smooth. Gradually beat in sugar until light and fluffy. Beat in egg yolks until very light. Then beat in melted chocolate until combined. At low speed, beat in flour and 1/4 cup milk, alternately beginning and ending with flour. With wooden spoon, stir in 1/2 cup ground almonds and vanilla. Beat egg whites at high speed until stiff peaks form. With wire whisk using an over and under motion, gently fold egg whites into batter until just combined. Turn into prepared pan spreading evenly. Bake 25 minutes (no longer). Cool in pan on wire rack. Then loosen edges.

Icing: In top of double boiler, melt chocolate with butter and milk. Stir with wooden spoon to combine; remove from heat. Beat in confectioners' sugar and almond extract. Use to ice top and side of cooled cake. Sprinkle top with remaining ground almonds. Decorate sides with sliced almonds.