4 squares unsweetened chocolate
4 eggs, separated
2 c. granulated sugar
1 c. flour, sifted
1 tsp. vanilla
1 c. milk
1 tsp. baking powder

FROSTING:

1 lb. confectioners' sugar
1/2 c. butter, softened
1 tsp. vanilla
3 tbsp. milk
2 squares unsweetened chocolate

Preheat oven to 375 degrees. Heat chocolate and milk over low heat, beat until a paste forms; allow to cool. In a separate bowl, beat egg yolks until pale yellow in color. Beat in sugar and vanilla. Add chocolate mixture. Add flour and baking powder. Beat egg whites until stiff, then fold into batter. Put batter into 2 greased and floured 8x8x2 inch square cake pans. Bake for 20-25 minutes.

FROSTING: Beat sugar, butter, vanilla and milk until smooth. Melt chocolate, then add to frosting. Frost cake when cool.