Festive Frangelico Cake

1 (18.25 ounce) box yellow cake mix
1 small box instant vanilla pudding mix
4 eggs
1/2 cup cold water
1/2 cup oil
1/2 cup chopped pecans or walnuts
1/2 cup Frangelico

Combine cake ingredients in a large bowl; beat at medium speed for 2 minutes. Pour into a greased and floured 10-inch pan. Bake at 350 degrees F for 1 hour.

Set on rack to cool. Invert on serving plate. Prick top immediately with wooden pick; drizzle and brush half of glaze evenly over top and sides. Reserve 1/2 of glaze. After cake has cooled, reheat glaze and brush it evenly over cake.

Glaze:
1/8 pound butter
1/2 cup granulated sugar
1/8 cup water
1/4 cup Frangelico

Melt butter in saucepan. Stir in water and sugar. Boil 3 minutes, stirring constantly. Remove from heat. Stir in Frangelico.