Mix all ingredients, except chocolate chips, together. Spoon 1/2 of mixture into greased bundt pan. Sprinkle chips on top, being careful not to let any touch the pan. Spoon remaining batter on top. Bake at 350 degrees for 55 to 60 minutes. Cool 15 minutes. Remove from pan. Frost when cooled.
Combine ingredients in medium saucepan. Bring to a boil, stirring constantly. Boil one minute; remove from heat and cool 5 minutes and then beat with mixer until it is the consistency of frosting (5 minutes). Drizzle over bundt cake immediately. You can substitute 1 Tbsp oil plus 3 Tbsp unsweetened cocoa powder for the 1 square unsweetened chocolate.