1 pkg. yellow cake mix
1 pkg. vanilla instant pudding and pie filling
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. Angel Flake coconut
1 c. nuts, chopped

Blend cake mix, pudding mix, water, eggs, and oil in large mixer bowl. Beat at medium speed for 4 minutes. Stir in coconut and nuts. Pour into greased and floured cake pans (2). Bake at 350 degrees for 35 minutes. Cool in pans for 15 minutes. Remove and cool on rack. Fill and top with frosting.

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
3 1/2 c. powdered 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 cup of the coconut. Shred on top of cake layers; stack and sprinkle with remaining coconut.