1/2 C chopped pecans or macadamia nuts
1/3 C flaked coconut
1 pkg yellow cake mix
1 small package (3-1/2 oz) instant vanilla pudding mix
1/2 C cooking oil
1/2 C water
1/2 C coconut milk or cream of coconut
4 oz butter
1/3 C sugar
2 T water
3 T coconut milk or cream of coconut
Combine butter, sugar, and water in a small saucepan and bring to a boil for 1 minute. Remove from heat and stir in the coconut milk.
Grease and flour a tube pan. Combine nuts and coconut and sprinkle on bottom and sides of pan. Combine cake mix, pudding mix, eggs, oil, water, and coconut milk and mix with an electric mixer on medium for 2 minutes. Pour into pan and bake at 325 F for one hour.
Remove cake from oven and place pan on wire rack. Poke holes in top of cake with a fork. Pour half the coconut sauce over the top of the hot cake. Allow to cool.
Remove cake from pan. Pour the rest of the coconut sauce over the inverted cake and sprinkle with coconut to garnish.