1 pkg. (2 layer size) yellow cake mix
1 pkg. (4 serving size) instant vanilla flavor pudding & pie filling
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. Bakers Angel Flake coconut
1 c. pecans OR walnuts, chopped

Blend cake mix, pudding mix, water, eggs and oil in a large mixer bowl, beat at medium speed of electric mixer 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 9 inch layer pans and bake at 350 degrees for 35 minutes. Cool in pans for 15 minutes, remove and cool on rack. Fill and frost with coconut-cream cheese frosting.

COCONUT-CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. Bakers Angel Flake coconut
1 pkg. (8 oz.) cream cheese
2 tsp. milk
3 1/2 c. sifted confectioners' sugar
1/2 tsp. vanilla

Melt 2 tablespoons butter in skillet and add coconut, stirring 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 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.

High altitude areas increase water to 1 3/4 cups and add 1/4 cup flour.