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To Make the Cake: Position rack in the center of the oven and heat to 350F.
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Lightly butter a 9 inch springform pan.
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Dust with bread crumbs and tap out the excess crumbs.
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Line the bottom of the pan with a round of parchment or wax paper.
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Grind the nuts in a rotary nut grinder fitted with the fine grating drum.
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Transfer to a bowl and mix with the flour.
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Beat the eggs in the bowl of a heavy duty electric mixer at high speed until the mixture is very thick and forms a slowly dissolving ribbon when the beaters are lifted a few inches, about 5 minutes.
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In two additions, fold in the walnut flour mixture with a large balloon whisk or rubber spatula.
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Spread evenly in the pan.
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Bake until a toothpick inserted in the center of the cake comes out clean, about 35 minutes.
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Cool in the pan on a wire rack for 5 minutes.
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Remove the sides of the pan, and invert the cake onto the rack.
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Remove the paper.
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Reverse onto another rack and cool completely.
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To Make the Icing: Process the walnuts and confectioners sugar in a food processor fitted with the metal blade until the walnuts are very finely chopped, almost a powder.
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Pour the milk into a medium saucepan.
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Sprinkle in the cornstarch, and whisk to dissolve.
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Whisk in the yolks.
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Cook over medium low heat, whisking constantly, until the sauce is boiling and as THICK as PUDDING.
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The sauce must come to a full boil; the cornstarch will prevent the yolks from curdling.
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Strain the custard into a medium bowl set in a larger bowl of ice water.
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Stir in the rum and vanilla.
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Let stand until cool, stirring occasionally.
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Transfer the custard to the bowl of a heavy duty standing mixer with the whisk attached and beat until smooth, about 1 minute.
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On medium speed, one tablespoon at a time, beat in the butter, occasionally increasing the speed to high for about 10 seconds to ensure smooth blending.
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Beat in the walnutconfectioners sugar mixture -- (sometimes called powdered or icing sugar).
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If the icing is too warm to spread, place the bowl in a larger bowl of ice water and let stand, stirring occasionally, until chilled and spreadable.
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TO ASSEMBLE: Transfer about 3/4 cup of the icing to a pastry bag fitted with a 9/16 inch wide French star tip, such as Ateco Number 865.
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Using a long serrated knife, horizontally slice the cake into 2 equal layers.
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Place the bottom layer on an 8-inch cardboard round or a serving plate.
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Spread with about 1 cup of the remaining icing.
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Top with the other layer, and frost the top and sides of the cake with the remaining icing.
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Press the chopped walnut onto the side of the cake.
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Pipe twelve rosettes on top of the cake and place a walnut half on each.
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Refrigerate under a cake dome until 1 hour before serving.
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12 servings.
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Make Ahead: The cake can be prepared up to 2 days before serving and stored under a cake dome in the refrigerator.
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Kaffeehaus..Rick Rodgers