Grease a 9 x 13 inch pan.

Cream the butter and add sugar. Beat until fluffy. Add vanilla. Add eggs, one at a time, beating thoroughly after each addition. Alternately add the dry ingredients and milk.

Spread in the pan and bake 35 - 40 minutes at 350 F. Cool and remove from pan. Wrap in foil and refrigerate overnight for easier handling.

Cut into serving sizes, which would be about 2 x 1 1/2-inches

Sift icing sugar and cocoa together. Stir in water.

Roll cakes in the chocolate icing and then in the coconut.

Please note: Traditionally, the sponge cake is placed on a long-handled fork and positioned over a large bowl of thin icing. The icing is then drizzled over the entire surface of the sponge cake and set aside on a wire rack to remove excess icing but not to harden. Once excess icing has dripped off, the cakes are then rolled in the dessicated coconut, and placed on clean racks to set.