Steps:
- For Cake: Blend cake mix, pudding mix, water, eggs and oil large mixer. Beat at medium speed of electric mixer 4 minutes. Stir in coconut. Pour into 3 greased and floured 9 inch layer pans. Bake at 350 degrees for 35 minutes. Cool in pans 15 mins. Remove and cool on rack. Fill and frost with Cream Cheese Frosting For Frosting: Melt 2 tablespoons butter in skillet. Add coconut, stir constantly over low heat until golden brown. Spread coconut on paper towels to cool. Cream 2 tablespoons of butter with cream cheese and milk and sugar alternately beating well. Add vanilla. Stir in 1 3/4 cups of coconut. Spread on tops and sides of cake layers. Sprinkle with remaining coconut.
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