1. Heat oven to 350-degrees. Grease, then flour only bottom of 10-inch tube pan.
2. In double boiler over hot, not boiling, water melt chocolate with water until very smooth, stirring occasionally. Remove from heat; blend in light cream.
3. Sift together flour, baking powder and salt.
4. In large bowl with mixer at medium speed, cream butter with shortening. Gradually add sugar, continuing to beat until light and fluffy—at least 5 minutes.
5. Beat in eggs, one at a time, beating 1 minute after each addition.
6. Combine milk and vanilla. With mixer at low speed, add sifted dry ingredients alternately with milk starting and finishing with dry ingredients and beating thoroughly after each addition. Batter will be quite thick.
7. Turn 1/4 of batter into prepared tube pan. Drizzle with a layer of about 1/3 of melted chocolate mixture. Repeat with 2 alternating layers of batter and chocolate. Top with rest of batter.
8. Bake 70-80 minutes. Cool 15 minutes in pan.
9. Spoon chocolate Glaze along top edge of cake, letting it run down sides.
In double boiler, over hot, not boiling, water melt 1 1/2 quarter pound bars of sweet cooking chocolate with 2 teaspoons vegetable shortening, stirring until smooth.