1 (2 layer size) pkg. yellow cake mix
1 (4 serving size) pkg. Jello vanilla flavor instant pudding
1 c. chopped pecans or walnuts
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. Baker's angel flake coconut

Combine cake mix, pudding mix, water, eggs, and oil in large mixer bowl. Blend; then beat at medium speed of electric mixer for 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 9 inch layer pans. Bake at 350 degrees for 35 minutes. Cool in pans 5 minutes. Remove from pans. Cool on racks. Fill and top with Coconut Cream Cheese Frosting.

COCONUT CREAM CHEESE FROSTING:

Saute 2 cups coconut in 2 tablespoons butter until golden brown, stirring constantly. Remove from heat; spread on absorbent paper and cool. Cream 2 tablespoons butter with 8 ounces of cream cheese. Alternately add 3 1/2 cups sifted confectioners sugar and 2 teaspoons milk in small amounts, beating well after each addition. Stir in 1/2 teaspoon vanilla and 1 3/4 cup of the coconut. Spread on cake layers, sprinkle remaining coconut over top.