CAKE; Preheat oven to 325 degrees. Grease and flour 10" tube or 12 cup Bundt pan.
Sprinkle 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 all glaze is used up.
GLAZE: melt butter in saucepan. Stir in water and sugar.
Boil 5 minutes stirring constantly. Remove from heat stir in rum.
Decorate with whole maraschino cherries and border of sugar frosting or whipped cream.
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