Bring 1 1/3 cups water and 3 tablespoons sugar to a boil: add 3/4 cup ground coffee. Remove from fire, cover and let stand 5 minutes. Strain through souble thickness of cheese cloth.
Sift flour once, measure, add salt and soda, and sift three times. Combine chocolate, butter, and 1/2 cup coffee syrup in top of couble boiler; place over boiling water and cook until chocolate i smelted, stirring constantly. Cool and add sugar. Add flour and milk alternately in two parts, stirring until blended. Add vanilla and eggs and beat 2 minutes. Bake in two greased 9-inch layer pans in moderate oven (350 degrees F.) 30-35 minutes. Spread coffee butter frosting made with remaining coffee syrup between layers and on top and sides of cake. Decorate with a border of chopped pecans.