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Grease and flour 2 nine-inch round pans.
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In a large mixing bowl, cream margarine with white sugar.
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Add the egg yolks one at a time, beating after each addition.
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Sift together flour and soda.
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Alternate adding the dry ingredients into the creamed mixture with buttermilk.
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Add the walnuts, coconut, and vanilla.
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Beat the egg whites until stiff and fold them into the batter.
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Pour the batter into the cake pans and bake for 45 minutes in a 350-degree oven.
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Remove from oven and allow to cool.
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While cake is cooling, make the cream cheese icing.
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Cream butter with cream cheese.
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Add powdered sugar; mix well.
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Add vanilla and beat until smooth.
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Place one cake layer on a cake plate, and ice the top.
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Cover with the second cake layer.
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Ice the sides and top of the cake.