Cake:

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

Blend cake mix, pudding mix, water, eggs and oil in large mixer bowl. Beat at medium speed for 4 minutes. Stir in coconut and nuts. Pour into greased and floured 9 x 13 pan.

Bake at 350°F for 35 minutes or until tester in middle comes out clean. Let cool 15 minutes and frost with Coconut Cream Cheese Frosting.

Coconut Cream Cheese Frosting:

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

Melt 2 tablespoons butter in skillet. Add coconut. Stir constantly over low heat until golden brown. Spread coconut on paper towel 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 browned coconut. Spread on top of cake. Sprinkle top with remaining coconut.