1 1/2 c. sugar
1 c. unsalted butter, softened
4 eggs, separated
1/2 c. water
1/3 c. grated white chocolate
2 1/2 c. all purpose flour
1 tsp. baking soda
1 c. buttermilk
1 tsp. vanilla

ICING:

3/4 c. evaporated milk
1/2 c. + 2 tbsp. sugar
1/4 c. unsalted butter
1 tsp. vanilla
2 c. grated white chocolate

CAKE: Cream sugar and butter until fluffy. Beat in egg yolks, one at a time; set aside. In small saucepan over low heat, combine water and white chocolate. Melt chocolate and then beat into butter mixture. Sift together flour and baking soda. Add to creamed mixture with buttermilk. Stir in vanilla. Beat egg whites until stiff but not dry, fold into batter. Divide batter into 3 lightly floured and greased 9" cake pans. Bake at 350 degrees for 20 minutes or until done. Remove and cool before removing from pans.

ICING: In saucepan over low heat, combine evaporated milk, sugar and butter. When butter is melted, simmer 1 minute. Stir in vanilla. Remove from heat and beat in white chocolate until completely melted. Let cool to a spreadable consistency.