Line three 9-inch round baking pans with greased waxed paper and set aside.

Melt chocolate and water in a saucepan over low heat and cool.

Preheat oven to 350°F (175°C).

Cream butter and sugar in a large bowl until light and fluffy.

Beat in egg yolks one at a time.

Blend in the melted chocolate and vanilla.

Combine flour, baking soda, and salt in a separate bowl.

Add the dry ingredients to the creamed mixture alternately with buttermilk, beating well after each addition.

Beat egg whites until stiff peaks form in a small bowl with clean beaters.

Fold a fourth of the egg whites into the creamed mixture and then fold in the remaining whites.

Pour batter into prepared pans.

Bake for 24-28 minutes, or until a toothpick inserted in the center comes out clean.

Cool for 10 minutes before removing from pans to wire racks to cool completely.

For frosting, heat sugar, milk, butter, and egg yolks in a saucepan over medium-low heat, stirring constantly until thickened and golden brown.

Remove from heat and stir in coconut, pecans, and vanilla extract.

Cool until thick enough to spread.

Spread a third of the frosting over each cake layer and stack the layers.

Melt chocolate and shortening in a microwave and stir until smooth.

Drizzle melted chocolate over the cake.