Preheat oven to 350 and grease and flour 3- 8 in round cake pans.
Sift together the flour, cocoa, baking powder, salt and espresso granules. Set aside.
In large bowl, cream together the margaine/butter and sugar for 5 minutes on med high speed. Beat in the eggs, one at a time, then stir in vanilla. Beat in flour mixture alternately with milk/water mixture just until incorporated. Start and end with flour mixture. Divide equally into 3 cake pans.
Bake in preheated oven for 20-25 minutes, depending on your oven, until cake tests done. Allow to cool.
For frosting: Melt chocolate and butter in microwave or double boiler. In large bowl,combine cocoa powder, sugar, vanilla extract, Godiva Chocolate liqueur, espresso granules and 1/2 cup of the milk.
Blend in the melted chocolate mixture with the sugar mixture. Add remaining milk, a little at a time, until desired consistency is reached.
Let stand until spreadable...frosting will thicken as it cools.
Once cake and frosting have cooled, frost between layers and exterior of cake. For extra flavor, brush warm cake layers with chocolate liqueur prior to frosting.