1
In small saucepan, over low heat, stir chocolate and water until chocolate is melted. Set aside to cool.
2
In a bowl, combine flour, baking soda and salt.
3
In a large mixer bowl, on medium speed, cream butter until smooth. Add sugar (1 cup) and beat until light and fluffy. Beat in vanilla and eggs onl ow speed, until blended, and then beat on medium speed for 2 minutes. Stir in chocolate mixture. Beat in flour mixture alternately with the sour cream, making 3 additions flour, and 2 of sour cream., on low speed, until blended.
4
Pour batter evenly into prepared pans (2 x 9inch round). Bake in preheated oven for 35 to 40 mins or until toothpick inserted in the centre comes out clean and dry. Let coolin pans on wire racks for 10 minutes and then remove and let cool completely on wire racks.
Prepare frosting:
In a saucepan, over medium heat, lightly beat the egg. Add the milk, sugar (2/3 cup) and butter, stirring until thickened and bubbly, about 10 mins. Remove from heat and add coconut and pecans. Cover and let cool completely before frosting cake. Spread 1/3 between layers, rest over top and sides.