Grease 3 8x8x2 inch baking pans; lightly dust each pan with 1 tsp of the cocoa powder.
In medium bowl stir together flour, remaining cocoa powder, baking powder and baking soda; set aside.
In large bowl beat the butter with an electric mixer on medium-high speed for 30 sec.
Add sugar; beat until combined.
Add eggs, one at a time, beating for 20 sec after each.
Beat in chocolate and vanilla.
Alternately add flour mixture and milk, beating on low speed until thoroughly combined.
Divide batter into prepared pans; spread evenly.
Bake for 17-20 min or until toothpick comes out clean.
Cool in pans on wire rack for 20 minute Remove cakes from pans. Transfer cakes to wire racks; cool completely.
In saucepan over med-high heat bring cream just to boiling.
Stir malt powder.
Add milk chocolate pieces (do not stir). Cover; set aside 5 minutes.
Stir until smooth. Transfer to large mixing bowl. Mixture will be thin.
Cover and refrigerate 3 hours or until frosting is thoroughly chilled.
Set bowl of frosting in a larger bowl of ice water. Beat with mixer on medium speed for 3 minutes or until fluffy and of spreading consistency. (The frosting will turn light brown with beating.).
Spread cup of frosting on two of the layers and stack. Add top layer; frost the top and sides reserving some frosting for the piping. Use this to decorate cake. Decorate the cake with whole, halved, or coarsely chopped malted milk balls.