1 pkg. yellow cake mix
1 (3 1/2 oz.) pkg. instant vanilla pudding mix
1 1/3 c. water
4 eggs, room temp.
1/4 c. vegetable oil
2 c. coconut
1 c. chopped pecans

FROSTING:

4 tbsp. butter, divided
2 c. coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
1/2 tsp. vanilla
3 1/2 c. confectioners' sugar

In large bowl, blend cake mix with pudding, water, eggs and oil. Beat at medium speed for 3 minutes. Stir in coconut and nuts. Pour into three greased and floured 8" pans. Bake at 350 degrees for 25 to 30 minutes or until cake springs back when touched in center. Cool in pans for 10 minutes. Remove to rack to complete cooling.

To make frosting, melt 2 tablespoons butter in skillet. Add coconut and stir constantly over low heat until golden brown. Spread coconut on absorbent paper towel to cool. Cream remaining butter with cream cheese, milk and vanilla. Add sugar, beating well to blend. Stir in 1 1/2 cup toasted coconut. Spread on top and sides of cake. Sprinkle remaining coconut over cake. Yield: 16 to 20 servings.