In a microwave, melt butter and chocolate; stir until smooth. Cool for 10 minutes. Combine flour, baking powder, baking soda and salt; set aside. In a large bowl, beat eggs, sugar, applesauce and vanilla. Stir in chocolate mixture. Gradually add dry ingredients; mix well.
Pour into a greased 13×9-in. baking pan. Bake at 350° until a toothpick inserted in center comes out clean, 20-30 minutes.
Set aside 1/2 cup marshmallows for glaze. Sprinkle remaining marshmallows over cake. Return to oven until marshmallows are softened, about 2 minutes.
In a small saucepan, combine sugar, milk and butter. Bring to a boil; boil 1-1/2 minutes. Remove from heat; stir in chocolate chips and reserved marshmallows until melted. Quickly drizzle over cake (glaze will harden as it cools).
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