• Melt the baking chocolate with water over medium-low heat. Stir constantly. This "blooms" the chocolate, intensifying the cocoa flavor before it even hits the batter.
• Beat the butter and sugar for at least 3 minutes until light and airy. Pour in the melted chocolate while mixing.
• Spray three 8-inch cake pans with non-stick spray, but then line the bottoms with parchment paper circles. This is vital for German chocolate cake, as the crumb is very tender and can stick easily.
• Divide the batter evenly. Bake at 350°F for 35–40 minutes. Cool the cakes completely in the pans before attempting to flip them out.
• For the frosting, combine the butter, sugars, and evaporated milk in a saucepan. Whisk in the egg yolks.
• Cook over medium heat for 10–12 minutes. You are looking for a bubbly, thick custard. Pro Tip: If the sauce coats the back of a wooden spoon and leaves a clear trail when you run your finger through it, it’s ready.
• Stir in the coconut and pecans. Let the frosting cool for at least 30 minutes to firm up.

Assembly:

• German Chocolate Cake is traditionally served with "naked" sides.
• Layer 1: Rounded side down, top with 1/3 of the frosting.
• Layer 2: Rounded side down, top with 1/3 of the frosting.
• Layer 3: Rounded side up, top with the remaining frosting.

Set:

• Refrigerate the assembled cake for 1 hour before slicing. This prevents the rich custard frosting from sliding off the layers.