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

FROSTING:

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

In large bowl, blend cake mix with pudding, water, eggs and oil. Beat at medium speed for 3 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 8 inch cake pans. Bake at 350 degrees for 25-30 minutes or until cake springs back when touched in center. Cool in pans for 10 minutes. Remove to rack to complete cooling.

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