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Preheat oven to 350°.
Butter a 10-inch tube pan.
Combine first 10 ingredients in large bowl of electric mixer and beat until smooth. Fold in chocolate chips. Turn into pan.
Bake until tester inserted in center comes out clean, about 45 minutes.
Let cool in pan 10 minutes. Invert onto wire rack and let cool completely.
Dust top of cake with powdered sugar.
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