Preheat oven to 350°F (175°C). Grease and flour four 9-inch round cake pans.
In a large bowl, cream together the sugar and 1 cup butter until light and fluffy. Add the eggs one at a time, beating well with each addition.
In another bowl, sift together the flour and baking soda. Add to the creamed mixture alternately with buttermilk, beginning and ending with flour mixture. Stir in 1 teaspoon vanilla, 1 cup coconut, and pecans.
Pour batter into prepared pans. Bake for 25 minutes or until a toothpick inserted into the center comes out clean. Cool in pans for 10 minutes, then turn out onto wire racks to cool completely.
For the frosting: In a large bowl, combine cream cheese, ½ cup butter, and 1 teaspoon vanilla. Beat until smooth. Gradually add powdered sugar, beating until light and fluffy.
Spread frosting between layers and on top and sides of cake. Sprinkle toasted coconut on top.