Preheat oven to 375°F and prepare two 8-inch cake pans.

Beat butter until smooth. Add sugar and continue to beat until light and fluffy.

Stir in the eggs and vanilla until smooth.

Sift dry ingredients together.

Stir half of the dry ingredients into the butter mixture. Then stir in the milk. Finish by incorporating the rest of the dry ingredients.

Pour into prepared pans and bake for 20-25 minutes, or until the top springs back when lightly touched with a finger. Cool for about 5 minutes in the pan, then turn onto wire racks and cool completely.

Melt chocolate and butter together in a double boiler until smooth.

Remove from heat and stir in vanilla and powdered sugar.

Add half and half or cream a bit at a time until creamy and spreadable.

Spread over cake while warm; it sets up as it cools.