1 (18.25 ounce) box yellow cake mix 1 small box vanilla instant pudding and pie filling 1 1/3 cups water 4 eggs 1/4 cup vegetable oil 2 cups flaked coconut 1 cup chopped pecans or walnuts
Preheat oven to 350 degrees F. Grease and flour three 9-inch layer pans.
Blend cake mix, pudding mix, water, eggs and oil in large mixer bowl. Beat at medium speed of electric mixer for 4 minutes. Stir in coconut and walnuts. Pour into prepared pans. Bake for 35 minutes. Cool in pans 15 minutes; remove and cool on rack. Fill and frost with Coconut-Cream Cheese Frosting.
Melt 2 tablespoons of the butter in skillet. Add coconut; stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool. Cream remaining 2 tablespoons butter with cream cheese. Add milk and sugar alternately, beating well. Add vanilla extract. Stir in 1 3/4 cups of the coconut. Spread on tops and sides of cake layers. Sprinkle with remaining coconut.