1 pkg. yellow cake mix
1 pkg. Jello brand vanilla instant pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut
1 c. chopped walnuts or pecans

Blend cake mix, pudding mix, water, eggs and oil in large mixer bowl. Beat 4 minutes. Stir in nuts and coconut. Pour into three 9 inch greased and floured cake pans. Bake at 350 degrees for 35 minutes. Cool in pans 15 minutes, remove and cool on rack. Fill and frost with following frosting.

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. coconut
8 oz. cream cheese
2 tsp. milk
3 1/2 c. powdered sugar
1/2 tsp. vanilla

Melt 2 tablespoons butter in skillet. Add coconut. Stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool. Cream 2 tablespoons butter with cream cheese. Add milk and sugar. Beat well. Add vanilla. Stir in 1 3/4 cups coconut. Ice cake. Sprinkle with remaining coconut.