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.
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