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In a small mixing bowl, beat sugar, butter and milk. Combine flour, cocoa, baking powder and salt; stir into sugar mixture. Add walnuts. Pour into a greased 9x9 pan.
Topping-
Combine sugars and cocoa; sprinkle over batter. Pour water over all Do Not Stir.
Bake at 350 for 30 minutes. Cool 10 minutes. Spoon some of fudge sauce over each serving; top with ice cream, if desired.
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