Preheat the oven to 325 degrees F.
Grease and flour a bundt pan very well and set aside. Make sure not to skip this step or the cake will stick.
Crush the vanilla wafer cookies very well. Use a food processor if you have one, or place the vanilla wafers in a large freezer bag and use a rolling pin or flat side of a meat mallet to crush them well. Set aside.
In a large mixing bowl, add the butter and sugar and mix on medium-high with an electric mixer for a couple minutes until light and fluffy.
Add the eggs, one at a time, mixing on medium speed after each addition.
Add the milk, vanilla extract and crushed vanilla wafers and mix on medium-high until well combined.
Scrape the sides and bottom of the bowl and mix again for about 10 seconds.
Add the shredded coconut and nuts and mix in by hand.
Pour the batter into the prepared pan and bake at 325 degrees F for approximately 1 hour to 1 hour and 10 minutes depending on your oven. (Ovens vary so you may need to bake a bit less or a bit more, just keep an eye on it.)
A toothpick inserted into the cake should come out either clean or with a few moist crumbs on it, but no raw batter.
Remove the cake from the oven and set the pan on a cooling rack to cool for about 20 minutes.
After 20 minutes, turn the cake out onto the cooling rack and let it cool for about 10-20 minutes more.
Serve this cake warm with either a sprinkling of powdered sugar, butter, cool whip or caramel sauce.
See the notes section for best ways to store this cake, serve it and for more questions. You can also see this cake being made in the video inside this post.