Preheat oven to 350º.
In a large mixing bowl, combine sugar, oil and eggs. Beat on high for 1 minute. Add remaining ingredients except nuts. Beat 3 minutes at medium speed.
Stir in nuts.
Pour ½ batter into generously greased and floured tube pan. Spoon filling over batter. Top with remaining batter.
Combine sugar, vanilla, cream cheese and egg. Beat until smooth.
Stir in coconut and chocolate chips. Set aside.
Bake for 70-75 minutes until top springs back.
Cool cake then unmold.
Prepare glaze: Combine 1 c powdered sugar, 3 Tblsp cocoa, 2 Tblsp softened butter, 2 tsp vanilla, and 1-3 tsp hot water.
Pour glaze over cake.