Melt chocolate in saucepan, stirring over low heat, or in microwave oven.
Caramelize onion by sauting over medium low heat for 8-10 minutes in 2 tablespoons oil in skillet until soft.
In large bowl, beat remaining oil with sugar, eggs and vanilla until thoroughly mixed and fluffy, about 2 or 3 minutes. Beat in warm melted chocolate and caramelized onions. Mix flour with baking soda and salt; stir into batter alternately with milk. Divide batter evenly into 2 well-greased and floured 8-inch round layer cake pans.
Bake at 350 degrees for 25-35 minutes or until a pick inserted into
center comes out dry. Cool 15 minutes then invert onto wire racks to thoroughly cool. Spread on icing. Makes 12 servings.
Easy Fudge Icing:
Melt 8 oz. unsweetened chocolate with 1/2 c. butter in saucepan, stirring often over very low heat. Mix in 1/2 c. hot water then turn into mixing bowl. Beat in about 5 c. powdered sugar, a portion at a time. (Adjust as needed to
make a good consistency.)
Quickly fill and frost cake while icing is still warm. If some icing gets too cool to spread easily, place it in microwave-safe bowl and microwave shortly just until softened and lustrous.
Makes about 3-1/2 cups.