1 1/2 cups water
1/2 cup milk
1 teaspoon vanilla extract
1 1/2 cups all-purpose flour
1 teaspoon baking powder
1 tablespoon baking soda
3 tablespoons white sugar
1 egg
1 3/4 cups flaked coconut
1 egg, beaten
1 1/2 tablespoons butter, melted
1 tablespoon orange juice
1 tablespoon lemon zest
1 (8 ounce) package cream cheese, softened
2 cups finely chopped almonds
1 cup chopped walnuts
Preheat oven to 350 degrees F (175 degrees C). Grease and flour 2 (9 inch) round pans. Sift together the flour, baking powder, baking soda, sugar and egg. Make a well in the center of the flour mixture and pour in the water, milk, vanilla extract and flour mixture. Mix well.
Stir egg, butter, orange juice, lemon zest and coconut into the batter.
Pour batter into prepared pan. Bake in the preheated oven for 60 to 65 minutes, or until a toothpick inserted into the center of the cake comes out clean. Allow to cool completely. Cut into 3/4 inch rounds. Serve warm or at room temperature.