1 1/2 cups quick cooking oats
1 1/2 cups all-purpose flour
1 3/4 tablespoons baking powder
2 eggs
1/2 cup vegetable oil
1 cup water
1 cup milk
1 cup buttermilk
1 teaspoon vanilla extract
1 cup chopped walnuts
2 1/2 cups buttermilk
1 cup margarine
1 cup butter
1 cup white sugar
1 teaspoon vanilla extract
1/2 teaspoon salt
1 (3 ounce) package instant chocolate pudding mix
2 cups milk chocolate chips
2 drops red food coloring
2 tablespoons butter
Preheat oven to 350 degrees F (175 degrees C). Grease and flour two 12-inch round pan pans.
Sift together the flour and baking powder. Set aside.
In a large bowl, mix oats and all-purpose flour. Stir in the eggs, oil, water, milk, buttermilk, and vanilla. Mix until smooth. Fold in the flour mixture. Spread the batter onto prepared pans.
Bake in the preheated oven for 90 minutes, or until a toothpick inserted into the center of the cake comes out clean. After 90 minutes, remove pan from oven and sprinkle pan with chocolate pieces.
While the cake is still hot, mix together the margarine, butter, sugar, and vanilla. Heat the margarine and vegetable oil over medium heat until melting. Stir in the three cup of buttermilk. Pour batter into prepared pan. Cool slightly. Remove from pan. Repeat with the remaining flour mixture and chocolate pieces. Set aside.
In a large bowl, cream together the butter and margarine until light and fluffy. Beat in the remaining two cup of buttermilk, and 1 cup margarine. Beat in the flour mixture alternately with the milk, stirring constantly. Pour the cream mixture into the greased and greased 12-inch round pans. Sprinkle the rest of the chocolate pieces over the top.
Bake in the preheated oven for 60 minutes, or until a toothpick inserted into the center of the cake comes out clean. In a small bowl, mix the remaining 2 cups sugar and light brown sugar together until smooth. Spread 2 tablespoons of the chocolate frosting over the layers of cake. Cover with remaining frosting.
To make the frosting: In a small bowl, mix the remaining 2 cups sugar and 1/2 cup margarine with the chocolate pieces. Spread the frosting over warm cake layers. Serve immediately, or chill in refrigerator.