Preheat oven to 350°F.
Place vanilla wafers in the bowl of a food processor.
Process until cookies resemble coarse sand.
Liberally spray bundt pan with non-stick cooking spray. Set aside.
Using the whisk attachment on a stand mixer cream together butter, vanilla extract and sugar on high speed, until light and fluffy, scraping down the sides of the bowl as needed. Whip for 3-4 minutes.
Reduce speed to low and add eggs, one at a time, until well combined.
Add milk, crushed vanilla wafer cookies, and shredded coconut. Blend on low speed until well combined.
Stir in chopped nuts.
Pour batter into well greased bundt pan.
Bake for 60-70 minutes or until the center is done.
Remove cake from oven and allow it to cool in the pan for an hour.
When cake pulls away from the pan invert onto a platter.
Dust with powdered sugar to serve.