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1. For bottom layer, stir together oats, the 1/2 cup flour, the brown sugar, and baking soda. Stir in the 1/2 cup melted butter. Pat mixture into the bottom of an ungreased 11x7x1-1/2-inch baking pan. Bake in a 350 degree F. oven for 10 minutes.
2. Meanwhile, for middle layer, stir together egg, granulated sugar, the 2/3 cup flour, the milk, the 1/4 cup melted butter, 1 ounce melted chocolate, the 1 teaspoon vanilla, and the baking powder until smooth. Fold in chopped walnuts. Spread batter over baked layer in pan. Bake about 25 minutes more or until a wooden toothpick inserted in center comes out clean. Set on a wire rack while preparing top layer.
3. For top layer, in a medium saucepan heat and stir 1 ounce chocolate and the 2 tablespoons butter until melted. Stir in the powdered sugar and the 1/2 teaspoon vanilla. Stir in enough hot water (1 to 2 tablespoons) to make a mixture that is almost pourable. Spread over brownies. If desired, garnish with walnut halves. Cool completely on wire rack. Cut into bars. Makes 32 brownies.