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

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. coconut
8 oz. cream cheese
2 tsp. milk
3 1/2 c. confectioners' sugar
1/2 tsp. vanilla

Blend cake mix, pudding mix, water, eggs and oil in large mixer bowl. Beat at medium speed of mixer 4 minutes. Stir in 2 cups coconut and nuts. Pour into 3 greased and floured 9 inch pans. Bake at 350 degrees for 35 minutes. Cool in pans 15 minutes; remove and cool on rack. Fill and frost with Coconut Cream Cheese Frosting.

Melt 2 tablespoons butter in skillet. Add 2 cups coconut; stir constantly until golden brown. Spread coconut on paper towels to cool. Cream 2 tablespoons butter with cream cheese. Add milk and sugar alternately, beating well. Add vanilla; stir in 1 3/4 cups of the coconut. Spread on tops and side of cake. Sprinkle with remaining coconut.