Combine:

1 c. evaporated milk
1 c. sugar
3 egg yolks
1/4 lb. butter
1 tsp. vanilla

Cook above ingredients over medium heat until thickens, about 12 minutes. Add about 1 1/3 cups coconut, and 1 cup nuts. Beat until frosting is cool and thick enough to spread. Makes enough to cover tops of three 9 inch layers.