In a 1-quart saucepan, melt 3 tablespoons butter and the chocolate over low heat, stirring occasionally. Meanwhile, in 1-cup glass measuring cup, microwave the water uncovered on High 15 to 30 seconds or until hot. Remove chocolate mixture from heat. Stir in the powdered sugar and 3/4 teaspoon vanilla. Stir in 3 tablespoons hot water. Stir in additional water, 1 teaspoon at a time, until icing is smooth and thin enough to spread.