Step 1: Preheat oven to 325 degrees. Set oven rack to second-lowest position. Grease and flour 10 inch tube pan or 12 cup Bundt cake pan.
Step 2: Sprinkle nuts over bottom of pan.
Step 3: For the cake; in a bowl beat all cake ingredients together until well blended. Pour over nuts.
Step 4: Bake 50-60 minutes or until cake tests done; cool.
Step 5: Invert on serving plate.
Step 6: For the glaze; melt butter in saucepan. Stir in water and sugar; boil 5 minutes stirring constantly. Remove from heat and stir in rum. Using a wooden skewer prick top to cake then drizzle smooth glaze evenly over top and sides. Allow cake to absorb glaze. Repeat until all glaze is used.
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