Preheat oven to 325 degrees. Grease and flour a 10” tube pan 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 and drizzle and smooth glaze evenly over top & sides. Allow cake to absorb glaze. Repeat until all the glaze is used up.
Melt butter in sauce pan. Stir in water & sugar. Boil 5 minutes, stirring constantly. Remove from heat. Stir in rum.