1 pkg. yellow cake mix
1 pkg. Jello vanilla instant pudding mix
1 1/3 c. milk
4 eggs
1/4 c. oil
2 c. coconut
1 c. chopped walnuts

Blend cake mix, pudding mix, milk, eggs and oil in large mixing bowl. Beat at medium speed for 4 minutes. Stir in coconut and walnuts. Pour into 3 greased and floured 9 inch layer pans. Bake at 325 degrees for 35 minutes. Cool in pans 15 minutes. Cool on racks. Fill and top 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 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 1 1/2 cups of the toasted coconut. Spread on tops of cake layers. Stack and sprinkle with remaining coconut.