1/2 c. butter
1 c. sugar
2 eggs, separated
3/4 c. milk
2 c. flour
2 tsp. baking powder
1/4 tsp. salt
1 tsp. vanilla
3/4 c. coarsely chopped walnuts
3/4 c. coconut flakes
3/4 c. coarsely chopped maraschino cherries, drained for coloring add red food coloring

Cream sugar and butter; add egg yolks and beat thoroughly. Sift flour; measure and sift again with baking powder and salt. Add alternately with milk to creamed sugar and butter. Beat thoroughly. Add flavoring. Gently stir in nuts, coconut, and cherries. Fold in stiffly beaten egg whites. Pour into well oiled layer cake pans. Bake in a moderately hot oven (375 degrees) about 25 minutes. Cool before frosting.

CHERRY NUT FROSTING:

1/4 c. butter
1 tsp. salt
2 tsp. vanilla
3 c. powdered sugar, sifted
1/4 c. milk
1/4 c. chopped walnuts
1/4 c. chopped maraschino cherries, drained
1/4 c. coconut flakes

Combine butter, salt, vanilla, 1 cup sugar, milk, and remaining sugar alternately. Mix until smooth and creamy; add nuts, coconut, and cherries. (Add more sugar to thicken or more milk to thin if needed for good spreading consistency.) Frosts 2 (8 to 9 inch) layer pans or 13 x 9 inch cake pan.