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FROSTING 2 (3 oz) pkg cream cheese — softened

1/2 cup margarine or butter — softened

1/2 teaspoon vanilla

1/2 teaspoon peppermint extract

6 cups powdered sugar

1/4 cup hot water

4 ounces semi-sweet chocolate — melted

CAKE 1/4 cup margarine or butter — softened

3 eggs

2 cups all-purpose flour

1 1/2 teaspoons baking soda

1 teaspoon salt

3/4 cup milk

Heat oven to 350F. Grease and flour two 9-inch round cake pans. In large bowl, combine cream cheese, 1/2 cup margarine, vanilla and peppermint extract; blend until smooth. Add powdered sugar alternately with hot water, beating until smooth. Blend in chocolate. In another large bowl, combine 2 cups of the frosting mixture and 1/4 cup margarine; blend well. Beat in eggs 1 at a time, beating well after each addition. Add flour, baking soda, salt and milk; beat until smooth. Pour batter evenly into greased and floured pans. Bake at 350F for 30-40 minutes or until toothpick inserted in center comes out clean. Cool 5 minutes; remove from pans. Cool completely. To assemble cake place 1 layer top side down on serving plate; spread with about 1/4 of frosting. Top with second layer top side up. Spread sides and top of cake with remaining frosting. Store in refrigerator.

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