White Chocolate Holiday Cake

1 cup butter or margarine, softened
2 cups sugar, divided
4 eggs, room temperature, separated
1-1/2 cups buttermilk
1 package (6 ounces) white chocolate baking squares, melted and cooled
1 teaspoon vanilla extract
2-1/2 cups cake flour
1-1/2 teaspoons baking powder
1/2 teaspoon salt
1/4 teaspoon baking soda
1 cup chopped pecans
1 cup flaked coconut

Frosting
1-1/2 cups butter (no substitutes), softened
6 cups confectioners' sugar
1 tablespoons vanilla extract
3 to 4 tablespoons milk
Poinsettia clay, optional

In a mixing bowl, cream butter and 1-1/2 cups of sugar. Add egg yolks, one at a time, beating well after each addition; set aside. Gradually stir buttermilk into white chocolate; add vanilla. Combine flour, baking powder, salt and baking soda. Add dry ingredients alternately with buttermilk mixture to creamed mixture; mix well. Beat egg whites until soft peaks form. Gradually add remaining sugar, beating until stiff peaks form; fold into batter.

Fold in pecans and coconut. Pour into three greased and floured 9-in. round baking pans. Bake at 350 degrees for 30-35 minutes or until cake tests done. Cool in pans 10 minutes before removing to wire racks; cool completely.

For frosting, beat butter, sugar, vanilla and 3 tablespoons milk at low speed in a mixing bowl until moistened. Increase speed to medium and beat for 1-1/2 minutes, adding additional milk to reach a spreading consistency. Spread between layers and over the top and sides of cake. Decorate with poinsettia clay if desired. Makes 12-16 servings.