Ingredients

1/3 lb White chocolate
1/2 c Water
1 c Unsalted butter
; or margarine; soften
2 c Granulated sugar
4 lg Eggs; separated
2 1/2 c Sifted cake flour
1 1/2 ts Baking powder
1/2 ts Salt
1 c Buttermilk
1 ts Vanilla extract
1 c Chopped almonds or pecans
1 cn (3 1/2 ozs) flaked coconut
-----frosting-----
2 c Whipping cream
2 tb Confectioners' sugar
2 ts Vanilla extract
1 c Flaked coconut

Directions

1. Heat oven to 350 degrees. Grease three 9-inch round cake pans. Line bottoms with wax paper. Grease paper.
   
2. Put white chocolate and water into top of double boiler; cook and stir over simmering water until melted. (Water should not touch bottom of top boiler.) Whisk until smooth; cool. Cream butter and 1 1/2 cups sugar in large mixer bowl until light and fluffy. Beat in egg yolks, one at a time, beating well after each addition.
   
3. Sift flour with baking powder and salt. Add flour mixture to butter mixture in thirds, alternately with buttermilk, vanilla extract and white chocolate mixture, beating until smooth after each addition.
   
4. Beat egg whites in small mixer bowl until soft peaks form. Gradually beat in remaining 1/2 cup sugar; beat until stiff but not dry. Fold into batter; gently fold in nuts and coconut.
   
5. Spoon batter evenly into prepared pans. Bake until wooden pick inserted into center is withdrawn clean, 30 to 35 minutes. Cool on wire racks 10 minutes. Remove from pans; cool completely on wire racks. Remove wax paper.
   
6. For frosting, beat cream until frothy. Beat in sugar and vanilla extract. Beat until soft peaks form. Fold in coconut. Put one cake layer onto platter; frost. Repeat layers. Frost top and sides of cake. Refrigerate up to 2 hours before serving.