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

Blend cake mix, pudding mix, water, eggs and oil in large mixing bowl. Beat at medium speed for 4 minutes. Stir in coconut and nuts. Pour into 2 greased and floured 9-inch layer pans. Bake at 350 degrees for 35 minutes.

FROSTING:

4 tbsp. butter
2 c. coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
2 c. sifted powdered sugar
1/2 tsp. vanilla

Mix 2 tablespoons butter in skillet. Add 2 tablespoons of coconut, stir constantly over low heat until golden brown. Spread coconut on absorbent paper. Cream 2 tablespoons butter with cream cheese. Add milk and sugar. Add vanilla and coconut. Spread on cake and put golden coconut on top of cake after frosted.