CAKE:

1 pkg. yellow cake mix
1 pkg. instant vanilla pudding (3 1/2 oz.)
1 1/3 c. water
1/4 c. vegetable oil
2 c. coconut
1 c. chopped pecans
4 eggs, room temperature

In large bowl blend cake mix with pudding, water, eggs and oil. Beat at medium speed for 3 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 8 inch cake pans. Bake at 350 degrees for 25-30 minutes or until cake springs back when touched in center. Cool in pans for 10 minutes. Remove to rack to complete cooling.

FROSTING:

4 tbsp. butter, divided
2 c. coconut
1 (8 oz.) cream cheese
2 tsp. milk
1/2 tsp. vanilla
3 1/2 c. powdered sugar

Melt 2 tablespoons butter in skillet; add coconut and stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool. Cream remaining 2 tablespoons butter with cream cheese, milk and vanilla. Add sugar, beating well to blend. Stir in 1 1/2 cups toasted coconut. Spread on top and sides of cake. Sprinkle remaining coconut over cake.