1 pkg. yellow cake mix
1 1/3 c. water
1/4 c. oil
4 eggs
1 (3 3/4 oz.) pkg. instant vanilla pudding
2 c. Angel Flake coconut
1 c. chopped walnuts

Mix together cake mix, water, oil, eggs and pudding, beat 4 minutes. Add coconut and walnuts. Bake in 3 greased and floured layer pans or 9"x13" loaf pan at 350 degrees for 35 to 40 minutes.

ICING:

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

In skillet place 2 tablespoons butter, brown coconut, stirring constantly. Cool on paper towels. Mix tablespoons butter, milk, vanilla and cream cheese. Add powdered sugar; mix well. Add 1 1/2 cups coconut. Ice cake; sprinkle with remaining coconut.