3/4 cup broken white chocolate or almond bark
1/2 cup hot water
2 1/2 cups all-purpose flour
1 1/2 cups granulated sugar
1 teaspoon baking soda
1/2 teaspoon baking powder
1/2 teaspoon salt
1 cup butter or margarine, softened
1 cup buttermilk or sour milk
3 eggs
1 teaspoon vanilla extract
1/2 cup chopped pecans
1/2 cup flaked coconut

Preheat oven to 350 degrees F. Grease and flour the bottoms only of 2 (9-inch) layer pans.

Melt white chocolate with hot water over low heat; cool.

In large mixer bowl combine flour, sugar, soda, baking powder, salt, butter and buttermilk. Blend at low speed until moistened. Beat 1 minute at medium speed, scraping bowl occasionally. Add eggs, melted white chocolate mixture and vanilla extract. Blend. Beat 1 minute at medium speed. Stir in pecans and coconut. Pour batter into prepared pans. Bake at for 30 minutes or until top springs back.

White Fudge Frosting
3/4 cup coarsely chopped white chocolate or
    almond bark
2 1/2 tablespoons flour
1 cup milk
1 cup butter or margarine, softened
1 cup granulated sugar
1 1/2 teaspoons vanilla extract

In medium saucepan combine white chocolate and flour. Blend in milk. Cook over medium heat, stirring constantly until mixture is very thick. Cool completely.

In large mixer bowl cream butter, sugar and vanilla extract. Beat until fluffy, about 3 minutes. Gradually add cooled white chocolate mixture. Beat at high speed until it is the consistency of whipped cream.