Glazed Rum Cake

I got this recipe from my Grandma Olive.

Cake:
1 cup chopped pecans or walnuts
1 18.5 oz package yellow cake mix
1 3.75 oz package vanilla pudding mix
4 eggs
1/2 cup cold water
1/2 cup vegetable oil
1/2 cup dark rum (can use sherry or alternative)

Glaze:
1/4 lb butter
1/4 cup water
1 cup granulated sugar
1/2 cup dark rum

Preheat oven to 325 degrees F.  Grease and flour 12-cup bundt pan.  Sprinkle
nuts over pan bottom.  Mix all cake ingredients together and pour over nuts.
Bake 1 hour.  Cool.  Make glaze (see below).  Invert cake on serving plate.
Prick top all over with toothpick.  Drizzle and smooth glaze evenly over top
and sides.  Allow cake to absorb glaze.  Repeat until glaze is used up.

For glaze:  Melt butter in saucepan.  Stir in water and sugar.  Boil 5
minutes, stirring constantly.  Remove from heat.  Stir in rum.