Mix together:

1 cup sugar
1/2 cup butter

Add 2 eggs, one at a time, beating well after each addition.

Sift together:

2 cups flour
2 tsp. baking powder
1/2 tsp. salt

Stir into egg mixture with 2/3 cup milk and 1 teaspoon vanilla. Pour into 2 greased and floured 8" round pans. Bake 25 to 30 minutes in 350°F oven.

ICING:

4 tbsp. butter
6 squares chocolate
5 tbsp. scalded milk
2 1/2 c. sifted powdered sugar
1/4 tsp. salt
1 tsp. vanilla

Heat butter and chocolate over hot water until butter melts. Pour scalded milk over powdered sugar and salt. Stir until dissolved. Add vanilla and hot chocolate mixture. Beat until thick enough to spread and is smooth and glossy.