Instructions: Sift together flour, baking powder, salt and sugar; make a well i center of dry ingredients. Add oil, water, yolks, and vanilla; beat at med.

speed w/elec. mixer for 2 minutes. Beat egg whites and crem of tartar at high speed until stiff peaks form. Pour egg yolk mixture in a thin, steady stream over entire surface of egg whites; gently fold whites into yolk mixture. Fold in grated chocolate. Pour batter into an ungreased 10 inch tube pan, spreading evenly with a spatula. Bake at 325 deg. for 55 mins.; increase temp. to 350 deg. and bake an additional 10 minutes or until cake springs back when lightly touchedl Remove from oven; invert pan, and let cool 40 minutes. Loosen cake from sides of pan using a narrow metal spatula; remove from pan. Spread frosting on top and sides of cake.

Yield:one 10-inch cake.

FROSTING: Combine chocolate and shortening in top of a double boiler.

Bring water to a boil; reduce heat to low and cook until choc. melts, stirring occasionally. Add sugar and stir until smooth. Add milk and remaining ingredients; stir until frosting is spreading consistency.

Yield:1 1/2 cups.

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