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, spoon and brush glaze evenly over top and sides. Allow cake to absorb glaze, repeat until glaze is used up.
Melt butter in sauce pan. Stir in water and sugar; boil 5 minutes, stirring constantly. Remove from heat and stir in rum.