1 pkg. yellow cake mix
1 small pkg. vanilla instant pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. coconut
1 c. chopped pecans

Blend cake mix, pudding mix, water, eggs and oil in a large mixing bowl. Beat at medium speed for 4 minutes. Stir in coconut and pecans. Pour into 3 greased and floured 9-inch layer pans.

Bake at 350°F for 35 minutes. Cool in pans for 15 minutes. Remove and cool on rack. Fill and top with Coconut-Cream Cheese Frosting.

Coconut-Cream Cheese Frosting:

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

Melt butter in skillet. Add coconut. Stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool. Cream 2 tablespoons of butter with cream cheese. Add milk; beat in sugar gradually. Blend in vanilla; stir in 1 3/4 cups of the coconut. Spread on tops of cake layers. Stack and sprinkle with remaining coconut.