Preheat oven to 350 F. In a large bowl, beat together the SunButter, sugar, egg, milk, coconut oil, and vanilla extract until well combined.
Gently fold in the flour, cocoa powder, and baking powder until the batter is thick like brownie batter. Slowly pour in the hot water and continue to mix until the batter is thin and smooth.
Pour the batter into a 6 inch cake pan that has been greased with oil. Bake the cake in the oven for 27 - 30 minutes until you can insert a toothpick into the center and it comes out clean. Let the cake cool completely before removing it from the pan.
Once the cake has cooled, prepare the frosting by beating together the SunButter, cocoa powder, and vanilla extract. Add the milk in intervals as you do this to help thin out the mixture.
Once the milk is all incorporated, beat in the powdered sugar well until the frosting is creamy and thick.
To assemble the cake, scoop the frosting onto the top of the cooled chocolate cake and use an offset spatula to spread it all over, leaving a little bit of room around the edges. If desired, use the back of a spoon to create a few swirls in the frosting and top with sprinkles.
Use a thin sharp knife to cut the cake into slices when ready to enjoy!