Cake: Sprinkle nuts in bottom of bundt pan. Mix all cake ingredients together. Pour over nuts. Bake 1 hour at 325 F. Cool. Invert on serving plate. Prick top and drizzle and smooth glaze evely over top and sides. Allow cake to absorb glaze. Repeat until glaze is used up. Glaze: Melt butter in sauce pan. Stir in water and sugar. Boil 5 minutes, stirring constantly. Remove from heat and stir in rum.