PREHEAT oven to 350° F.
COMBINE cake mix, butter and egg in large bowl; mix with fork until crumbly. Press onto bottom of ungreased 13 x 9-inch baking pan. Combine sweetened condensed milk, egg and vanilla extract in medium bowl; beat until well blended. Stir in 1 cup coconut, nuts and morsels.
SPREAD mixture evenly over base; sprinkle with remaining coconut. Bake for 28 to 30 minutes or until center is almost set (center will firm when cool). Cool in pan on wire rack.