Preheat & Prepare Pan – Set the oven to 350°F. Grease an 8×8-inch baking pan with butter and dust it lightly with flour.
Cook the Potato – Wash and dice the potato, leaving the skin on. Boil until fork-tender, then drain. Mash until smooth, measuring about ¾ cup, and mix with the milk.
Cream the Butter & Sugar – In a large mixing bowl, beat the butter and sugar together until fluffy. Add the eggs and continue beating until well incorporated.
Combine Wet & Dry Ingredients – Stir the potato mixture into the butter mixture. In a separate bowl, whisk together the flour, baking powder, cinnamon, cloves, and nutmeg. Gradually fold the dry ingredients into the wet mixture.
Add Chocolate & Nuts – Stir in the grated chocolate and chopped walnuts until evenly distributed.
Bake the Cake – Pour the batter into the prepared pan and bake for 45-50 minutes, or until a toothpick inserted into the center comes out clean.
Cool – Let the cake rest in the pan for 10 minutes before transferring to a wire rack to cool completely.