Heat oven to 325. Grease and flour 25 cm tube pan. Mix together all ingredients except chips and nuts. Beat vigorously for 2 mins, then stir in chips & nuts and last 5 ingreds. Bake 50 60 mins. until toothpick tests clean. Cool. Remove from pan.
Melt butter in saucepan. Stir in water & sugar. Boil exactly 5 minutes, stirring constantly. Remove from heat. Stir in vodka & kahlua. Prick top & sides of cake and drizzle glaze evenly over top & sides.