4 squares unsweetened chocolate 1 3/4 cup sugar, divided 1/2 cup water 1 2/3 cup flour 1 teaspoon baking soda 1/4 teaspoon salt 1/2 cup butter or regular margarine, softened 3 eggs 3/4 cup milk 1 teaspoon vanilla extract
Heat oven to 350 F. Grease and flour two 9 inch round cake pans.
Melt chocolate, 1/2 cup sugar, and the water over very low heat until the chocolate is melted, stirring constantly to prevent the chocolate from becoming burned. Cool to lukewarm.
Mix the flour, baking soda, and salt. Set aside.
Beat the butter and remaining 1 1/4 cups of sugar until light and fluffy. Add the eggs, one at a time, beating well after each addition. Add the flour mixture alternately with the milk, beating well after each addition, until smooth. Stir in the chocolate mixture and the vanilla.
Pour into the prepared pans. Bake for 30 to 35 minutes or until the cake springs back when lightly touched. Cool for 10 minutes, then remove from pans.
Cool completely on wire racks. Frost cake with your favorite chocolate frosting.