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Butterscotch Dessert

1 cup flour
2 tablespoons granulated sugar
1/2 cup butter, softened
3/4 cup chopped nuts
8 ounces cream cheese, softened
1 cup confectioners' sugar
1 (8 ounce) container Cool Whip
2 small boxes instant butterscotch pudding mix
1 1/2 cups milk
1 1/2 cups sweetened condensed milk
1 teaspoon vanilla extract

Combine flour, sugar, butter and nuts in a bowl; mix well. Press into a 13 x 9-inch baking dish. Bake at 350 degrees F for 15 minutes or until lightly browned. Cool.

Blend cream cheese, confectioners' sugar and 1 cup Cool Whip thoroughly. Spread over crust. Beat pudding mix with milk, condensed milk and vanilla extract in a mixer bowl until smooth. Spread over cream cheese layer. Top with remaining Cool Whip. Chill for several hours. Garnish with additional nuts or coconut.