Grease a 10" bundt pan. You can use shortening or butter and flour OR simply use a nonstick baking spray (with or without flour in the spray.)
Sprinkle the nuts evenly around the bottom of the bundt pan.
Mix the remaining cake ingredients together: cake mix, pudding mix, eggs, ½ cup water, vegetable oil and ½ cup rum.
Pour batter into the bundt pan over the nuts.
Bake for 45-55 minutes or until a toothpick inserted into the cake comes out with just a few crumbs.
Remove the cake from the oven and allow to cool slightly while making the glaze.
Glaze Instructions:
Prepare the glaze by melting the butter in a saucepan.
Stir in the water and sugar, heating over medium high until mixture comes to a boil.
Boil for 5 minutes, stirring constantly.
Remove the glaze from the heat and stir in rum.
Pour ½ of the glaze over the warm cake, still in the pan, and allow it to seep in for about 15 minutes.
Turn the cake out onto a serving platter or a rimmed plate. Use a pastry brush to brush the remaining glaze over the top and sides of the cake until it has all soaked into the cake. It will take multiple applications to use up the whole saucepan of glaze, but it is worth the extra time! Use every drop!
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Notes
After baking up the cake in a bundt pan, add half the glaze to soak into the cake while it is still in the pan. The cake can be warm. The glaze will be soaking into what will be the bottom of the cake. Then, once you flip the cake out onto a platter, you can apply the rest of the glaze to seep into the top and sides. The cake is all about the glaze, so don't skimp! The full glaze recipe is meant to be absorbed by the cake even though it seems like a large amount.You can set the cake on a drying rack over a baking sheet to catch excess drips.The instant pudding mix is a great way to infuse moisture into the cake. We use this trick with some of our other recipes like our Cookie Monster Cookies, pumpkin chocolate chip cookies, and our crack cake (which also has a butter glaze!)