Preheat oven to 160ºC / 320ºF.
Grease and line a 20cm square cake tin or a 15x30cm tin
Combine the sugar, chocolate , butter and the water in a large saucepan and stir occasionally over a low heat until the chocolate is melted and the mixture is smooth.
Remove from the heat and cool slightly, then sift in the flour, bicarbonate of soda, and cocoa. Whisk until smooth.
Whisk in the egg and yolk and the buttermilk. Beat until smooth.
Pour into prepared baking pan and cook for 40-45 minutes or until cooked.
Cool in the tin.
Melt the chocolate in a bowl over a pan of simmering water, stirring until the chocolate is melted and smooth. Allow to cool to just above room temperature.
Beat the butter in an electric beat until creamy, then add the room temperature chocolate and beat for about 5 minutes until creamy and soft.
Beat in the sifted icing sugar and vanilla extract.
Spread over cooled cake and decorate as you like.