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1. Preheat oven to 350 degrees F. Grease three 8x8x2-inch square or 9x1 1/2-inch round baking pans. Lightly dust each pan with 1 teaspoon of the cocoa powder; set pans aside. In a medium bowl stir together the remaining cocoa powder, the flour, baking powder, and baking soda; set aside.
2. In a large bowl beat butter with an electric mixer on medium to high speed for 30 seconds. Add sugar; beat until combined. Add eggs, one at a time, beating for 30 seconds after each addition. Beat in chocolate and vanilla. Alternately add flour mixture and milk to beaten mixture, beating on low speed until thoroughly combined. Divide batter among prepared pans, spreading evenly.
3. Bake for 17 to 20 minutes or until a wooden toothpick inserted near the centers comes out clean. Cool cakes in pans on wire racks for 10 minutes. Remove cakes from pans. Cool completely on wire racks.
4. To assemble cake, spread 3/4 cup of the Chocolate Malt Frosting on tops of two of the layers; stack on a serving plate. Add top layer; frost the top and sides of the cake, reserving some of the frosting for piping. Place the remaining frosting in a decorating bag fitted with a medium round tip. Starting from the bottom, pipe a zigzag pattern on sides and top edge of cake. If desired, coarsely chop or halve some of the malted milk balls. Decorate the cake with malted milk balls. Cover and chill until ready to serve. Cover and store any leftovers in the refrigerator.
1. In a medium saucepan heat cream over medium-high heat just until boiling. Remove from heat. Stir in malted milk powder. Add milk chocolate pieces (do not stir). Cover and let stand for 5 minutes. Stir until smooth. (Mixture will be thin.) Transfer to a large bowl. Cover and chill about 3 hours or until frosting is thoroughly chilled. Set the bowl of frosting in a larger bowl of ice water. Beat frosting with an electric mixer on medium speed about 3 minutes or until fluffy and of spreading consistency. (The frosting will turn light brown during beating.)