Step 1: Preheat oven to 350 °F. Butter an 8-inch square glass baking dish.
Step 2: Heat 1 1/4 cups of milk for 2 to 3 min or until steaming in a glass measuring cup in microwave on Medium (50 %) power or in saucepan over medium heat on stove-top.
Step 3: In bowl, combine 1/2 sugar and 2 tablespoons cocoa. Whisk in remaining 1/4 cup cold milk until blended. Gradually whisk in hot milk until smooth. Set aside.
Step 4: CAKE: In separate bowl, combine flour, sugar, cocoa and baking powder. In another bowl, whisk together egg, milk, butter and vanilla extract. Pour over dry ingredients and sprinkle with chopped chocolate. Stir just until moistened. Spread into prepared baking dish. Gently pour warm milk mixture over cake batter WITHOUT stirring.
Step 5: Bake for about 30 minutes or until tester inserted in centre of cake layer comes out clean. Let cool for at least 10 min. Serve hot or warm. Scoop cake into serving bowl and spoon pudding sauce over top.
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