Prepare three 8 or 9-inch route cake pans by lining bottoms with parchment paper, then spraying pans with nonstick cooking spray.
Stir chocolate and ½ cup water together until melted on top of double boiler. Remove from heat and set aside.
In a medium bowl, mix together flour, baking soda, and salt; set aside.
In bowl of stand mixer with paddle attachment, mix butter, sugar until light and fluffy. Add egg yolks one at a time, beating after each. Then add melted chocolate and vanilla. Mix well.
Add flour mixture and buttermilk alternately to creamed butter, mixing after each until smooth.
Whip egg whites in separate bowl until stiff peaks form. Gently fold into batter until combined. Divide batter evenly between cake pans
Bake for 30 to 35 minutes, or until cake springs back with gentle touch in center. Cool for 15 minutes before turning out onto racks to cool completely.
Frosting
In a medium pan, whisk evaporated milk with vanilla and egg yolks until well blended.
Add butter and sugar and cook on medium until thick and golden brown, stiring constantly, about 10 to 12 minutes.
Stir in nuts and coconut, then cool completely before frosting cakes.
Spread ⅓ of frosting over each cake layer and stack the layers.