Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a mixing bowl, combine flour, baking soda, and salt. In another bowl, cream together the butter, oil, and sugar until light and fluffy. Add the egg yolks and vanilla, mixing well. Alternate adding the flour mixture and buttermilk, mixing until smooth. Stir in coconut and nuts.
In a separate bowl, beat the egg whites until stiff peaks form, then gently fold them into the batter. Divide the batter between the prepared pans.
Bake for 25-30 minutes or until a toothpick comes out clean. Allow to cool in the pans for 10 minutes before transferring to wire racks to cool completely.
For the frosting, beat together cream cheese and butter until smooth. Gradually add powdered sugar and vanilla, mixing until fluffy.
Once the cakes are cool, spread frosting between the layers and on top. Garnish with chopped pecans and shredded coconut.
Notes
Store leftovers in the refrigerator. You can also add chocolate chips for extra flavor.
Keyword cake, cream cheese frosting, dessert, Italian Cream Cake