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

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

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. angel flake coconut
1 (8 oz.) pkg. cream cheese
2 tbsp. milk
3 1/2 c. sifted confectioner's 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 and sugar alternately, beating well. Add vanilla. Stir in 1 3/4 cups of coconut. Spread on top and sides of cake. Sprinkle with remaining coconut.