1 pkg. (2 layer size) yellow cake mix
1 pkg. (4 serving size) instant vanilla pudding and pie filling
1 1/3 c. water
4 eggs
1/4 c. vegetable oil
2 c. flaked coconut
1 c. chopped walnuts or pecans

Blend cake mix, pudding mix, water, eggs and oil in large bowl of electric mixer. Beat at medium speed of electric mixer 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 9 inch cake pans. Bake in preheated 350 degree oven for 35 minutes. Remove and cool in pans 15 minutes; remove from pans and finish cooling on rack. Fill and frost with coconut cream cheese frosting.

COCONUT CREAM CHEESE FROSTING:

4 t tbsp. butter
2 c. flaked coconut
1 pkg. (8 oz.) cream cheese
2 tbsp. milk
3 1/2 c. sifted 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. Cool remaining 2 tablespoons butter with cream cheese.

Add milk and sugar alternately, beating well. Add vanilla; stir in 1 3/4 cups of the coconut. Spread on tops and sides of cake layers. Sprinkle with remaining coconut. (My family prefers the coconut untoasted for topping. You might try it both ways.)