Chocolate-Candy Cane Cake

Ingredients:
1 pkg. (2-layer size) chocolate cake mix
1 pkg. (4-serving size) JELL-O Chocolate Flavor Instant Pudding & Pie Filling
4 eggs
1 container (8 oz.) BREAKSTONE'S or KNUDSEN Sour Cream
1/2 cup oil
1/2 cup water
4 squares BAKER'S Semi-Sweet Baking Chocolate, chopped
18 small candy canes, coarsely crushed (about 1 cup), divided
1 tub (8 oz. ) COOL WHIP Whipped Topping, thawed.

PREHEAT oven to 350°F. Lightly grease two 9-inch round cake pans. Beat cake mix, dry pudding mix, eggs, sour cream, oil and water in large bowl with electric mixer on low speed just until moistened, stopping frequently to scrape side of bowl. Beat on medium speed 2 min. or until well blended. Stir in chopped chocolate and 2 Tbsp. of the crushed candy canes. Spoon evenly into prepared pans.
BAKE 35 to 40 min. or until toothpick inserted in centers comes out clean. Cool 10 min. Loosen cakes from sides of pans with metal spatula or knife. Invert cakes onto wire racks; carefully remove pans. Cool completely.
PLACE one of the cake layers on serving plate; spread evenly with 1 cup of the whipped topping. Top with remaining cake layer. Frost top and side of cake with remaining whipped topping. Sprinkle with remaining crushed candy canes just before serving. Store leftover cake in refrigerator.