2/3 cup margarine
1-2/3 cups sugar
3 eggs
1/2 teaspoon vanilla
2 cup flour
2/3 cup cocoa
1-1/4 teaspoons baking soda
1/4 teaspoon baking powder
1 teaspoon salt
1-1/3 cups water
1/2 cup crushed peppermint candy
Combine margarine, sugar, eggs and vanilla in large mixing bowl. Beat on high for 3 minutes. Combine flour, cocoa, baking soda and powder and salt. Add alternately with water to creamed mixture. Blend just until combined; add candy. Pour into 2 greased and floured round pans. Bake at 350 degrees for 30 to 35 minutes. Eat plain or frost with vanilla icing. Garnish with crushed peppermint candy.
Pink Peppermint Frosting
2 unbeaten egg whites
1/4 teaspoon cream of tartar
1/4 teaspoon lemon extract
Dash of salt
1 package powdered sugar
1/3 cup butter, soft
Red food coloring
1/2 cup crushed peppermint stick candy
Beat with mixer at high speed until fairly stiff. Add gradually (about a cup at a time), 1 package powdered sugar. Beat until smooth. Scrape bowl often. Add: soft butter and a few drops of red food coloring. Beat until well blended. Stir in: crushed peppermint stick candy. Frost tops and sides of two 8 or 9 inch layers.