Chop unsweetened chocolate and place it in a heatproof bowl, mix in cocoa powder. Boil a sum of water, and pour water into the bowl, stir until chocolate melted. Set aside.
Preheat oven to 350 F
Combine flour, baking powder and baking soda, set aside.
Cream margarine and add in sugar bits by bits, until fluffy then add in eggs one at a time. Add in vanilla extract followed with melted and cooled chocolate mixture.
Add in a little flour, followed with a little milk, until all used up; begin with flour and end with flour.
Pour batter and bake for 30-40 minutes or until a knife inserted in the center comes out clean.
Cool cake before frosting or applying fondant; do spread a little jam all over the cake before applying fondant.