1 pkg. yellow cake mix
1 pkg. vanilla instant pudding (4 serv. size)
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 for 4 minutes. Stir in coconut and nuts. Bake at 350 degrees until done.

FROSTING:

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

Melt 2 tbsp. butter in skillet. Add coconut and stir until golden brown. Spread on absorbent paper towels to cool. Cream 2 tbsp. butter with cream cheese. Add milk; beat in confectioners' sugar gradually, add vanilla and stir in 1 3/4 cups of the browned coconut. Spread on cake then sprinkle with remaining coconut.