1 pkg. (2 layer size) yellow cake mix
1 sm. pkg. Jello instant vanilla pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut (8 oz. bag)
1 c. chopped walnuts or pecans

Blend cake mix, pudding mix, water, eggs and oil in a large bowl. Beat at medium speed 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 9" layer pans. Bake at 350 degrees for 35 minutes. Cool in pans 15 minutes. Remove. Fill and top with frosting.

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. coconut (8 oz. bag)
1 (8 oz.) pkg. cream cheese
2 tsp. milk
3 1/2 c. confectioners' 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, beat in sugar gradually. Blend in vanilla, stir in 1 3/4 cups coconut. Spread on top of layers, stack and sprinkle with remaining coconut.