Step 1

Heat oven to 350°F.

Step 2

Beat first 5 ingredients with mixer on low speed just until moistened, stopping frequently to scrape bottom and side of bowl. Beat on medium speed 2 min. Pour into greased and floured 13x9-inch pan.

Step 3

Bake 35 min. or until toothpick inserted in center comes out clean. Cool completely.

Step 4

Beat cream cheese and butter in large bowl with mixer until blended. Gradually add sugar, mixing well after each addition.

Step 5

Remove cake from pan. Carefully cut cake crosswise in half using serrated knife. Place 1 cake half, top side down, on plate; spread with some of the frosting. Top with remaining cake half, top side up. Spread top and sides with remaining frosting. Press nuts into sides.