PREHEAT oven to 350° F. Grease and flour two 9-inch round baking pans.
COMBINE flour, baking soda and salt in a small bowl. Combine water, 1/2 cup sugar and Choco Bake in a small saucepan. Cook over low heat, stirring constantly, until smooth. Remove from heat.
BEAT remaining sugar, butter and vanilla extract in a large mixing bowl until creamy. Add eggs, one at a time, beating well after each addition. Beat in chocolate mixture. Gradually add flour mixture alternately with milk. Pour into prepared pans.
BAKE for 30 to 35 minutes or until wooden pick inserted in center comes out clean. Cool in pan for 10 minutes. Invert onto wire racks to cool completely.
FOR CHOCOLATE FROSTING:
MICROWAVE Choco Bake and butter in uncovered, microwave-safe bowl on HIGH (100%) power for 30 seconds; stir. If necessary, microwave at additional 5- to 10-second intervals, stirring just until butter is melted.
TRANSFER mixture to small mixer bowl; cool to room temperature.
BEAT sugar, 4 tablespoons milk, vanilla extract and salt into chocolate mixture just until spreading consistency. Up to 2 tablespoons milk can be added for a creamier frosting. Makes about 2 cups.