Blend 1 pkg yellow cake mix, 4 oz vanilla instant pudding mix, 1⅓ c water, 4 eggs, and ½ c vegetable oil in a large mixing bowl.
Beat at medium speed for 4 minutes.
Stir in 2 c Angel Flake coconut and 1 c pecans.
Pour into 3 greased and floured 9 inch round cake pans.
Bake for 35 minutes.
Cool in pans for 15 minutes, remove and finish cooling.
Frosting
Melt 2 tbsp butter or margarine in skillet. Add 2 c Angel Flake coconut and stir constantly over low heat until golden brown.
Spread coconut on paper towel to cool. Cream 2 tablespoons of butter cream cheese.
Add 2 tsp milk, beat in 3½ c sifted powdered sugar gradually. Blend in ½ tsp vanilla, stir in 1¾ c coconut. Spread on tops of cake layers. Stack and sprinkle with remaining coconut.