Preheat oven to 350 degrees F (175 degrees C). Grease one 9x12 inch cake pan. Cover the bottom of the cake pan with the chopped nuts and the flaked coconut.
Prepare cake mix according to package directions. Pour batter over chopped nuts and coconut.
Melt butter or margarine, add cream cheese and confectioner's sugar. Stir until blended. Spoon over unbaked batter.
Bake at 350 degrees F (175 degrees C) for 40 to 42 minutes. Please note: you cannot test for doneness, as the cake will appear sticky even when it is done. The icing sinks into the batter as it bakes, forming the white ribbon inside. Makes 16 servings.