How do I use T-SQL's Case/When?

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I have a huge query which uses case/when often. Now I have this SQL here, which does not work.

 (select case when xyz.something = 1
 then
     'SOMETEXT'
 else
      (select case when xyz.somethingelse = 1)
      then
          'SOMEOTHERTEXT'
      end) 

      (select case when xyz.somethingelseagain = 2)
      then
          'SOMEOTHERTEXTGOESHERE'
      end)
 end) [ColumnName],

Whats causing trouble is xyz.somethingelseagain = 2, it says it could not bind that expression. xyz is some alias for a table which is joined further down in the query. Whats wrong here? Removing one of the 2 case/whens corrects that, but I need both of them, probably even more cases.

4 Answers
declare @n int = 7,
    @m int = 3;

select 
    case 
        when @n = 1 then
            'SOMETEXT'
    else
        case 
            when @m = 1 then
                'SOMEOTHERTEXT'
            when @m = 2 then
                'SOMEOTHERTEXTGOESHERE'
        end
    end as col1
-- n=1 => returns SOMETEXT regardless of @m
-- n=2 and m=1 => returns SOMEOTHERTEXT
-- n=2 and m=2 => returns SOMEOTHERTEXTGOESHERE
-- n=2 and m>2 => returns null (no else defined for inner case)
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