Bacardi Rum Cake

I've never made this, but my mother-in-law has and it's amazing. Of course, rum is my drug of choice...

Cake:
1 c chopped pecans or walnuts
1 pkg yellow cake mix
1 small pkg instant vanilla pudidng mix
4 eggs
1/2 c cold water
1/2 c oil
1/2 c Bacardi dark rum (yummm...)

Glaze:
1/4 lb butter
1/4 c water
1 c sugar
1/2 c dark rum

Preheat oven to 325. Grease and four 10" tube of 12-cup bundt pan. Sprinkel nuts over bottom of pan. Mix all cake ingredients together. Pour batter over nuts. Bake 1 hour. Cool. Invert on serving plate. Prick top. Drizzle and smooth glaze evenly over top and sides. Allow cake to absorb glaze. Repeat till glaze is used up.

For glaze, melt butter in saucepan. Stir in water ans sugar. Boil 5 minutes, stirring constantly. Remove from heat. Stir in rum.