Preheat oven to 350°F. Grease and flour a 10 inch fluted tube pan.

In a large bowl, combine the first 5 ingredients; beat on low speed for 30 seconds. Beat on medium for 2 minutes.

Fold and the walnuts

Transfer to prepared pan and bake 40 to 45 minutes or until a toothpick inserted in the center comes out clean.

Cool in pan 10 minutes before removing to a wire rack to cool completely.

In a large bowl combine pudding mix and milk; beat on low speed for 1 minute.

Fold in the whipped topping. Spread over cake and refrigerate leftovers