Rave Reviews Coconut Cake

Step 1
Preheat the oven to 350 degrees F (175 degrees C). Grease and flour three 8- or 9-inch round cake pans.

Step 2
Blend cake mix, pudding mix, water, eggs, and oil in a large mixing bowl. Beat at medium speed for 4 minutes. Stir in 2 cups of coconut and chopped walnuts. Pour the batter into the prepared pans.

Step 3
Bake in the preheated oven for 35 minutes. Let cakes cool in the pans for 15 minutes, then remove and finish cooling on a rack.

Step 4
To Make Frosting: Melt 2 tablespoons butter in a skillet. Add 2 cups flaked coconut and stir constantly over low heat until golden brown. Spread coconut on absorbent paper to cool.

Step 5
Cream remaining 2 tablespoons butter with cream cheese. Add milk and confectioners' sugar alternately, beating well. Add vanilla and stir in 1 3/4 cups toasted coconut.

Step 6
To Assemble Cake: Spread tops of cooled cake layers with some of the frosting. Stack them and then frost the sides of the cake. Sprinkle cake with remaining toasted coconut.