Combine 1 cup sugar, 1 cup evaporated milk, 3 slightly beaten egg yolks, 1/2 cup butter, 1 teaspoon vanilla. Cook and stir over medium heat until thickened, about 12 minutes.

Remove from heat; add 1 1/3 cup angel flake coconut and 1 cup chopped pecans. Cool until of spreading consistency. Do not let is cool in an aluminum pan. This discolors the frosting. Frosts a layer cake.