1Heat oven to 325°F. Grease and flour 12-cup fluted tube cake pan, or spray with baking spray with flour. In ungreased shallow pan, spread coconut. Bake uncovered 5 to 7 minutes, stirring occasionally, until golden brown. Reserve 2 tablespoons toasted coconut for garnish.
2Make cake batter as directed on box. Fold remaining toasted coconut into batter. Pour into pan.
3Bake as directed on box for fluted tube pan. Cool 15 minutes; remove from pan to cooling rack. Cool completely, about 1 hour.
4In small microwavable bowl, microwave frosting uncovered on Medium (50%) 15 seconds. Drizzle frosting over top of cake. Sprinkle with reserved toasted coconut. Cut cake with serrated knife. Store loosely covered.