Preheat oven to 350 degrees F. Well grease 12 muffin pan cups.

In small saucepan, combine the 1/4 cup melted butter, brown sugar, and 1 Tbsp water. Simmer 1 minute. Place 3 or 4 walnut halves in each of the prepared muffin pan cups. Spoon cooked mixture over walnuts.

Sift flour, cocoa, soda, and salt together; set aside. Cream 1/4 cup butter. Graduallly add sugar and continue creaming until light and fluffy. Beat in egg and vanilla. Blend in dry ingredients alternately with the 1/2 cup water, beginning and ending with dry ingredients.

Fill muffin pan cups 1/2 full with batter. Bake for 20 to 25 minutes, until surface springs back when gently touched with fingertip. Remove from muffin pan. Let cool inverted on wire racks.

In small saucepan, combine milk and chocolate. Cook over very low flame, stirring constantly, until smooth and thickened, about 10 minutes. Stir in 1 Tbsp butter; keep warm. Spread on sides of cupcakes.

From Whitman's Chocolate Cookbook Isbn 0-517-64157-7