Rocky-Road Frosting

2 squares unsweetened chocolate
2 c. mini-marshmallows, divided
1/4 c. water
1/4 c. butter or margarine
2 c. powdered sugar, sifted
1 tsp. vanilla
1/2 c. chopped peanuts or walnuts (optional)

In a small saucepan, combine chocolate, 1 c. of marshmallows, water and butter, over low heat, stirring constantly until blended. Remove from heat and cool slightly. Slowly beat in powdered sugar, then vanilla. Beat until smooth and thick, about 2 minutes. Stir in the remaining 1 c. marshmallows and the nuts; mix until well combined.

Makes enough for 8-9 inch pan.