This could be the one you're looking for - it was one of the 100 recipes at the 20th PBO in 1968. At the time it was printed it did not call for being 'covered in coconut' - but I know some people did that anyhow when they made it. If this sounds like what you're looking for, would love to know. It was delicious. I had a taste of it at that PBO!
WHITE FUDGE CAKE
CAKE:
3/4 cup coarsely chopped or broken white chocolate
1/2 cup hot water
2-1/2 cups Pillsbury All Purpose Flour
1-1/2 cups sugar
1 teaspoon soda
1/2 teaspoon baking powder
1/2 teaspoon salt
1 cup butter or margarine, softened
1 cup buttermilk or sour milk
3 eggs
1 teaspoon vanilla
1/2 cup chopped pecans, walnuts or almonds
1/2 cup flaked coconut
Frosting:
3/4 cup coarsely chopped or broken white chocolate
2-1/2 tablespoons flour
1 cup milk
1 cup butter or margarine, softened
1 cup sugar
1-1/2 teaspoons vanilla
OVEN: 350 DEGREES F 9-INCH LAYER CAKE
cake: In small saucepan, melt white chocoalte and hot water over low heat; cool. In large mixer bowl, combine flour, sugar, soda, baking powder, salt, butter and buttermilk; blend at low speed until moistened. Beat 1 minute at medium speed, scraping bowl occasionally. Add eggs, melted white chocolate mixture and vanilla. Blend; beat 1 minute at medium speed. Stir in pecans and coconut. Pour batter into two 9-inch round layer pans which have been greased and floured on the bottom only. Bake at 350 degrees F for 30 to 35 minutes until top springs back when touched lightly in center. Cool 15 minutes; loosen edges and carefully remove from pan. Cool completely. Stack layers, bottoms together, spreading Frosting between layers and on sides and top.
Frosting:
In medium saucpan, combine white chocolate and flour. Blend in milk. Cook over medium heat, stirring constantly, until mixture is very thick. Cool completely. In larger mixer bowl, cream butter, sugar and vanilla; beat until light and fluffy, abut 3 minutes. Gradually add completely cooled white chocolate mixture. Beat at high speed until it is consistency of whipped cream.
Tips: Batter may be baked in two 8-inch square pans for 30 to 35 minutes or in 13 x 9 inch pan for 35 to 40 minutes. If batter is baked in 8-inch round pans, remove 1 cup batter from each pan; bake for 30 to 35 minutes. (Excess batter may be baked as cupcakes for 18 to 20 minutes).