Wellesley Fudge Cake

4 (1 ounce) squares unsweetened chocolate
1/2 cup hot water
1/2 cup white sugar
1/2 cup butter
1 1/4 cups white sugar
3 eggs
2/3 cup milk
1 teaspoon vanilla extract
2 cups all-purpose flour
1 teaspoon baking soda
1 teaspoon salt

1. Preheat oven to 350. Grease and flour two 9 inch round pans. Sift flour, baking soda and salt together 3 times and set aside.
2. In a small saucepan, heat water, chocolate and 1/2 cup sugar, stirring constantly, for 2 minutes. Remove from heat and cool to lukewarm.
3. Cream butter and sugar until light and fluffy. Add 3 eggs, one at a time, beating thoroughly after each egg. Add half of flour mixture and beat until smooth. Add milk and remaining flour mixture alternately in 2 parts. Beat smooth after each addition. Add vanilla and chocolate mixture. Blend well.
4. Divide batter into two 9 inch pans. Bake at 350ºF for 35 to 40 minutes, or until a toothpick inserted into the cake comes out clean.