Cream cream cheese, butter, vanilla, and rum until fluffy. Beat in 3c powdered sugar. Add hot water alternately with last 3c powdered sugar. Melt the chocolate, cool, and blend into mixture. Save 1/2 of the complete mixture as frosting
Sift together flour, baking soda, and baking powder. Combine 1/4c butter and remaining frosting. Blend in eggs one at a time. Alternately add sifted dry ingredients with milk, beginning and ending with dry ingredients.
Pour in two well greased and lightly floured 9 inch round cake pans.
Bake at 350 degrees for 30 – 35 minutes until tops spring back.