1 packaged yellow cake mix
1 pkg. (sm. size) vanilla instant pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut
1 c. chopped nuts

FROSTING FOR TOASTED COCONUT CAKE:

4 tbsp. butter
2 c. coconut
8 oz. pkg. cream cheese
3 tsp. milk
3 1/2 c. powdered sugar
1/2 tsp. vanilla

Beat cake mix, pudding, water, eggs and oil 4 minutes at medium speed, stir in coconut and nuts. Bake in a preheated 350°F oven for 35 minutes. Cool in pans 15 minutes before removing.

Makes 3 (9-inch) layers.