1 pkg. yellow cake mix
1 1/2 c. water
2 c. coconut
1 c. chopped nuts
1 pkg. instant Jello pudding
1/4 c. oil
4 eggs

Blend cake mix, pudding mix, water, eggs and oil. Beat at medium speed. Stir in coconut and nuts, pour in 3 (9 inch) pans. Bake at 350 degrees for 35 minutes.

FROSTING:

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

Melt 4 tablespoons of butter in skillet, add coconut, stir constantly over low heat until golden brown. Spread coconut on paper towel to cool. Cream 2 tablespoons of butter and cheese. Add milk and sugar, beat well, add vanilla. Stir in 1 1/4 cup coconut, spread on top and sides of cake. Sprinkle with remaining coconut.