Cake: Combine the water, 2 sticks of butter, and 1/2 cup cocoa in saucepan. Boil for 3 minutes, stirring constantly. Set aside to cool slightly.
In a separate bowl, mix the granulated sugar, baking soda, and flour. Stir in the sour cream, 1 teaspoon vanilla, eggs, and dash of salt. Add the slightly cooled chocolate mixture and stir well.
Pour the batter into a greased and floured 15x10 inch jelly roll pan. Bake at 350 degrees for 17-22 minutes (cake is done when a toothpick inserted comes out clean). Five minutes before removing the cake from the oven, prepare the icing.
Icing: Combine the milk, 1/4 cup cocoa and 1 stick of butter in a saucepan. Boil for 1 minute stirring constantly. Add the powdered sugar and 1/2 teaspoon vanilla. Add chopped nuts, if desired. Mix well and pour over the hot cake.