1 pkg. yellow cake mix
4 oz. vanilla instant pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut
1 c. walnuts or pecans, chopped

COCONUT-CREAM CHEESE FROSTING:

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

CAKE: Blend cake mix, pudding mix, water, eggs and oil in a large mixer bowl. Beat at medium speed for four minutes. Stir in coconut and nutmeats. Pour into three greased and floured nine-inch layer pans. Bake at 350 degrees for 35 minutes. Cool in pans 15 minutes; remove and cool on rack.

Fill and top with coconut cream-cheese frosting. ONE LAYER ALTERNATIVE: Substitute one greased and floured 9x12 inch baking pan. Cool and do not remove from pan.

FROSTING: Melt 2 tbsp. butter in skillet. Add coconut; stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool. Cream 2 tbsp. butter with cream cheese. Add milk; beat in sugar gradually. Blend in vanilla; stir in 1 3/4 cups of the coconut. Spread on top (s) of cake (layers). (Stack) and sprinkle with remaining coconut.