Frosting:

1 (8 oz.) pkg. cream cheese
1/2 c. butter
1 tsp. vanilla
1 box (1 lb.) confectioners' sugar
3/4 c. flaked coconut

Topping:

1/2 c. flaked coconut
4-5 drops red food coloring

Combine cream cheese, butter and vanilla in a bowl. Beat until blended and smooth. Gradually add confectioners' sugar while beating. Ad 3/4 cup coconut; mix well. Spread between layers and on top and sides.

For topping, combine 1/2 cup coconut and food coloring. Mix until evenly tinted and sprinkle over cake.