1 (6 oz.) pkg. (1 c.) semi-sweet real chocolate morsels
2 c. unsifted flour
1 tsp. baking powder
1 tsp. baking soda
1/4 tsp. salt
1 c. rinsed & drained sauerkraut
1/2 c. butter, softened
1 1/4 c. sugar
1 tsp. vanilla extract
2 eggs
3/4 c. water

VELVET FROSTING:

1 (6 oz.) pkg. (1 c.) semi-sweet real chocolate morsels
1/2 c. sour cream
1 tsp. vanilla extract
1/4 tsp. salt
2 1/2 c. confectioners sugar, sifted

Preheat oven to 350 degrees. Melt over hot (not boiling) water, semi-sweet real chocolate morsels. Remove from heat; set aside. In small bowl, combine flour, baking powder, baking soda and salt; set aside. Chop sauerkraut very fine. Set aside. In large bowl, combine butter, sugar and vanilla extract, beat until creamy. Add eggs, one at a time, beating well after each addition. Add flour mixture alternately with water. Blend in melted morsels. Fold in sauerkraut. Pour batter evenly into two greased and floured 8 or 9 inch round cake pans. Bake at 350 degrees 35 to 40 minutes. Remove from oven. Cool 10 minutes. Remove from pans. Cool completely, fill and frost with (Velvet Frosting). Melt over hot (not boiling) water, semi-sweet chocolate morsels. Remove from heat. Blend in sour cream, vanilla extract and salt. Gradually add sugar. Makes a two layer 8 or 9 inch cake.