1 pkg. (2 layer size) yellow cake mix
1 pkg. (4 serving size) vanilla instant pudding
1 1/3 c. water
4 eggs
1/4 c. oil
2 c. Angel Flake coconut
1 c. chopped walnuts or pecans

Blend cake mix, pudding mix, water, eggs and oil in large mixing bowl. Beat at medium speed 4 minutes. Stir in coconut and nuts. Pour into 3 greased and floured 8 inch cake pans. Bake at 350 degrees for 15 minutes. Cool in pans 15 minutes, remove and cool on rack. Fill and top with Coconut Cream Cheese Frosting.

COCONUT CREAM CHEESE FROSTING:

4 tbsp. butter
2 c. Baker's Angel Flake Coconut
1 (8 oz.) pkg. cream cheese
2 tsp. milk
3 1/4 c. sifted confectioners' 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; beat in sugar gradually. Blend in vanilla; stir in 1 3/4 cups of coconut. Spread on tops of cake layers. Stack and sprinkle with remaining coconut.