Meanwhile, in small saucepan, combine 1/2 cup sugar, unsweetened chocolate and 1/4 cup water; cook over low heat until melted, stirring constantly until smooth. Remove from heat; cool.
In small bowl, combine 1/2 cup shortening and 1 teaspoon vanilla. Gradually beat in 2 cups of the powdered sugar until well blended. Reserve 1/3 cup white frosting. To remaining frosting, add cooled chocolate, remaining 1/4 cup powdered sugar and enough water for desired spreading consistency.
To assemble cake, place 1 layer, pecan side up, on serving plate. Spread with about 1/2 cup chocolate frosting. Top with second layer, pecan side up. Frost sides and 1/2 inch around top edge of cake with remaining chocolate frosting. If necessary, thin reserved white frosting with enough water for desired piping consistency; pipe around edge of nuts on top of cake.
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