I don't know that there really are any good sugarless cake recipes out there without that chemical taste. A diabetic needs to not only worry about sugar, but carbs in general from the flour. With that said, if a diabetic eats a well balanced diet, a SMALL piece of cake isn't going to have much impact. You may want to search Google for low carb cake ideas.
Angel Food Cake is usually served to diabetics in the hospital for cake because it has a rather low carb count compared to most cakes... There isn't really alot of flour and sugar in it compared to the standard cake...
As for icing... There isn't any that I would ever use that are sugar free... I can't stand the taste of the sugar substitutes and they don't work the same in the icing...
Most of the diabetics I know would rather work out what they can eat so they can have a small piece of regular cake with icing on that day then try and eat something that won't necessarily taste as good...
Many members of my family are diabetics and what oftheeicing said is totally correct. Most people think only of the sugar but the flour is just as bad. Diabetics can eat a slice of cake occasionally as long as they eat a balanced diet and watch their overall carb intake. Most of the "sugar free" options are actually worse for diabetics that the real thing eaten in moderation.
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