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1. Allow eggs to stand at room temperature 30 minutes. Meanwhile, grease three 8x1-1/2-inch round cake pans. Line bottoms of pans with parchment paper. Grease parchment paper and lightly flour pans; set aside. In medium bowl stir together flour, cocoa powder, baking soda, baking powder, and 1/2 teaspoon salt; set aside.
2. Preheat oven to 350 degrees F. In large mixing bowl beat butter with electric mixer on medium to high for 30 seconds. Gradually add sugar, 1/4 cup at a time, beating on medium until well combined. Scrape sides of bowl; 2 minutes more. Add eggs one at a time, beating after each addition. Beat in vanilla. Alternately add flour mixture and milk to butter mixture, beating on low after each addition just until combined. Beat on medium to high 20 seconds more. Stir in grated chocolate. Divide batter among prepared pans.
3. Bake 30 to 35 minutes or until a wooden toothpick inserted near centers comes out clean. Cool cakes in pans on wire racks 10 minutes. Remove layers from pans. Cool thoroughly on wire racks.
4. Frost with desired frosting. Store, covered, in refrigerator. Makes 16 servings.
1. In large mixing bowl beat butter and cream cheese. Add unsweetened chocolate and vanilla; beat until blended. Gradually beat in 3 cups of the powdered sugar and milk. Beat in remaining powdered sugar to make a spreading consistency. Makes 4 cups.
1. In large mixing bowl combine butter, sour cream, and vanilla. Beat with electric mixer on medium for 30 seconds. Gradually beat in powdered sugar. Thin with buttermilk or milk to desired consistency. Makes about 4-1/2 cups.