1 pkg. yellow cake mix (2 layer size)
1 pkg. Jello instant pudding (4 serving size)
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut
1 c. chopped walnuts or pecans

Blend cake mis, pudding mix, water, eggs and oil in large mixing bowl. Beat at medium speed for 4 minutes. Stir in coconut and nuts and pour into three greased and floured 9 inch layer pans. Bake at 350 degrees for 35 minutes. Cool in pans for 15 minutes, then remove and cool on racks. Fill and frost with coconut-cream cheese frosting.

FROSTING:

4 tbsp. butter
2 c. coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
3 1/2 c. sifted confectioners 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 and stir in 1 3/4 cups of the coconut. Spread on tops and sides of cake layers. Sprinkle with remaining coconut.