Preheat oven to 325. Grease and flour a 10 inch tube pan. Sprinkle nuts over the bottom of pan. Mix remaining ingredients together. Pour batter over nuts. Bake for 1 hour. Cool. Invert on service plate. Prick top with fork or toothpick. Drizzle and smooth glaze evenly over top and sides. Allow cake to absorb glaze. Use all the glaze.
Glaze instructions: Melt butter in saucepan.Stir in water and sugar. Boil 5 minutes, stirring constantly. Remove from heat; stir in rum.