Preheat oven to 350 degrees F (175 degrees C). Grease and flour three 9-inch round cake pans.
In a large bowl, cream together the 1 cup of butter and 2 cups of sugar until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla extract. Combine the flour and baking soda, add to the creamed mixture alternately with the buttermilk. Finally, fold in the coconut and chopped pecans. Divide the batter evenly between the prepared pans.
Bake for 25 to 30 minutes in the preheated oven, or until a toothpick inserted into the center of the cake comes out clean. Let cool in pans for 10 minutes, then remove to a wire rack to cool completely.
To make the frosting, cream together the remaining 1/2 cup butter and cream cheese until smooth. Beat in the confectioners' sugar and 1 teaspoon of vanilla until the frosting is smooth and creamy. Frost the cooled cake.
Interesting Facts
Italian Cream Cake is said to have originated in the southern United States.
It is a popular cake in the United States for special occasions.
This cake is often served with a dollop of whipped cream.