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

Blend cake mix, pudding mix, water, eggs, and oil in large mixer bowl. Beat at medium speed for 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 9 inch round pans. Bake at 350 degrees for 35 minutes. Cool in pan 10 minutes; remove and cool on rack. Fill and top with Coconut Cream Cheese Frosting.

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
1 (8 oz.) pkg. cream cheese
3 1/2 c. sifted powdered sugar
2 tsp. milk
1/2 tsp. vanilla
2 c. Angel Flake coconut

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