Cream shortening and margarine until even consistency. Add sugar and vanilla, cream until even. Add egg yolks 1 at a time, creaming after each addition.
In a separate bowl, mix the maraschino cherry juice and buttermilk.
In a separate bowl, mix the flour, salt, and baking soda.
Add half of the wet ingredients to the creamed mixture and then mix into the dry ingredients. Repeat with the other half of ingredients.
Fold in coconut.
Beat egg whites to stiff peaks and fold into the mixture.
Divide mixture between 2 greased floured layer pans and bake for 45 minutes. Remove from oven and cool completely before icing.
Icing:
Beat first 4 ingredients until light and creamy. Spread mixture/icing between layers and over entire surface. Press toasted nuts around the periphery of the cake and arrange the remaining nuts on the top.
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