Blend cake mix, pudding mix, water, eggs and oil in large mixer bowl. Beat at medium speed of electric mixer 4 minutes.
Stir in coconut and walnuts.
Pour into 3 greased and floured 9-inch layer pans.
Bake at 350° for 35 minutes. Cool in pans 15 minutes; remove and cool on rack.
Fill and top with Coconut Cream Cheese Frosting.