Beat the eggs, sugar and vanilla sugar until fluffy. Beat the butter into the mixture a little at a time. Combine the nuts, flour and baking powder and fold them into the egg mixture, alternating with the milk. Pour the mixture into a greased and floured cake tin and bake in the lower part of the oven for about 40 minutes.
Mix together the icing sugar, water and margarine to make a smooth icing. Colour the icing as desired. Spread the icing over the cake. Leave to set on a wire rack. Decorate the cake as desired.
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