CAKE:

1 (18 1/4 oz.) pkg. yellow cake mix
1 (3 1/2 oz.) pkg. instant vanilla pudding mix
1 1/3 c. water
4 eggs, room temperature
1/4 c. vegetable oil
2 c. coconut
1 c. chopped pecans

FROSTING:

4 tbsp. butter, divided
2 c. coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
1/2 tsp. vanilla extract
3 1/2 c. confectioners' sugar

In large bowl blend cake mix with pudding mix, water, eggs and oil. Beat at medium speed for 3 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 8" cake pans. Bake at 350 degrees for 35 or 30 minutes or until cake springs back when touched in center. Cool in pans for 10 minutes. Remove to rack to complete cooling.

FROSTING: Melt 2 tablespoons butter in skillet and add coconut and stir constantly over low heat until golden brown. Spread coconut on paper towel to cool. Cream remaining butter with cream cheese, milk and vanilla. Add sugar, beating well to blend. Stir in 1 1/2 cups of the toasted coconut. Frost top and sides of cake. Sprinkle remaining coconut over cake. 16 to 20 servings.