Pour batter to prepared pans.Bake in preheated oven for 30 to 35 minutes, or until a toothpick inserted in the center of the cake comes out clean. Let cool.
To make the frosting: In a medium bowl, combine cream cheese, 1/2 cup butter, 1 teaspoon vanilla and icing sugar. Beat until light and fluffy. Stir in a small amount of cream to achieve desired consistency. Stir in chopped walnuts and remaining shredded coconut. Spread between layers and over top and sides of cooled cake.
Enjoy!