1 Preheat oven to 325 degrees F (165 degrees C). Grease one 10 inch Bundt pan. Place chopped nuts in the bottom of the Bundt pan.
2 With an electric mixer beat cake mix, pudding mix, eggs, oil, 1/2 cup of the water, and 1/2 cup of the rum on high speed for 2 minutes. Pour batter into prepared Bundt pan over the top of the chopped nuts.
3 Bake at 325 degrees F (165 degrees C) for 50 to 60 minutes.
4 To Make Rum Glaze: In a saucepan combine the butter or margarine, sugar, 1/4 cup of the rum, and 1/4 cup of the water. Bring mixture to a boil and cook for 2 minutes. Pour immediately over still warm cake.