[unicornlover]

CAKE:
2 cups all-purpose flour
1 3/4 cups granulated sugar
2/3 cup baking cocoa
1 1/2 tsp. baking powder
1 1/2 tsp. baking soda
1/2 tsp. salt
1 cup each milk and water
1/2 cup vegetable oil
2 large eggs
2 tsp. vanilla extract
1 2/3 cups (11-oz. pkg.) peanut butter and milk chocolate morsels, divided

FROSTING:
1 pkg. (8oz.) cream cheese, softened
1 tsp. vanilla extract
1/8 tsp. salt
3 cups powdered sugar

Preheat oven to 350 degrees and flour two 9-inch round cake pans. CAKE: Combine flour, granulated sugar, cocoa, baking powder, baking soda, and salt in large bowl. Add milk, water, oil, eggs and vanilla, blend until moistened. Beat for 2 minutes (batter will be thin). Pour into pans. Sprinkle 1/3 cup morsels over each cake.

Bake for 25 to 30 minutes or until wooden pick inserted in center comes out clean. Cool in pans for 10 minutes; remove to wire racks to cool completely. Apply frosting between layers and on top and side of cake. FROSTING: microwave remaining morsels in small, microwave-safe bowl on 70% power for 1 minute; stir. Microwave at additional 10 second intervals, stirring until smooth. Beat cream cheese, melted morsels, vanilla and salt in small mixer bowl until light and fluffy. Gradually beat in powdered sugar.