Reserve half of one candy bar for garnish. Break up remaining bars. Heat and stir broken candy and water in a small saucepan over low heat till melted. Cool 20 minutes. Grease and flour three 9xl 1/2-inch round cake pans.
Combine flour, baking powder, and baking soda; set aside. Beat butter or margarine in a large mixing bowl with an electric mixer on medium speed 30 seconds. Add the 1 1/2 cups sugar; beat till fluffy. Beat in egg yolks; beat in melted candy. Add flour mixture and buttermilk alternately to candy mixture, beating after each addition. Wash beaters thoroughly.
Beat egg whites in another bowl till soft peaks form (tips curl). Gradually beat in the 1/4 cup sugar; beat till stiff peaks form (tips stand straight). Fold into batter. Divide batter evenly among prepared pans.
Bake in a 350�F oven for 30 minutes or till a wooden toothpick inserted in centers comes out clean. Cool in pans on wire racks for 10 minutes; remove cakes from pans. Cool.
To serve, spread jam between layers; frost top and sides of assembled cake with Whipped Cream Frosting. Chop reserved candy; sprinkle on top of cake.
Makes 12 servings Whipped Cream Frosting: Beat 1 1/2 cups whipping cream with 1/4 cup sifted powdered sugar and 1/2 teaspoon vanilla till soft peaks form (tips curl).
Nutrition facts per serving: 610 calories, 34 g total fat (11 g saturated fat), 113 mg cholesterol, 313 mg sodium, 72 g carbohydrate, 1 g dietary fiber, 7 g protein. Daily Values: 43% vitamin A., 7% calcium, 10% iron.
Busted by Gail Shermeyer <4paws@netrax.net> Notes: To create a lined look on the cake, hold a cake comb against the side of the cake and pull it gently around the cake. Placing the cake on a lazy Susan makes this easy.