Sweet Potato Cake

1 1/2 cups vegetable oil
2 cups granulated sugar
4 eggs, separated
4 tablespoons hot water
2 1/2 cups sifted cake flour
3 teaspoons baking powder
1 teaspoon ground cinnamon
1 teaspoon ground nutmeg
1/4 teaspoon salt
1 1/2 cups raw sweet potatoes, grated
1 cup nuts, chopped
1 teaspoon vanilla extract

Heat oven to 350 degrees F. Grease three 8-inch layer pans and set aside.

Combine oil and sugar and beat until smooth. Add egg yolks and beat well. Add hot water, then dry ingredients which have been sifted together. Stir in potatoes, nuts and vanilla extract and beat well. Beat egg whites until stiff and fold into mixture. Pour into prepared cake pans and bake 25 to 30 minutes. Cool and frost.

Frosting:
1 (13 ounce) can evaporated milk
1 cup granulated sugar
1/2 cup margarine
3 egg yolks
1 teaspoon vanilla extract
1 1/3 cups flaked coconut

Combine milk, sugar, margarine, egg yolks and vanilla extract in a saucepan. Cook over medium heat about 12 minutes, stirring constantly, until mixture thickens. Remove from heat and add coconut. Beat until cool and of spreading consistency.