Preheat oven to 350 F.Butter and flour a Doughmaker's 9-inch round cake pan or two regular 8-inch round cake pans.
With an electric mixer, beat the sugar, oil and eggs until smooth. Sift together the flour, baking powder, baking soda, cinnamon, nutmeg, allspice and salt. Pour into sugar mixture and beat the batter until smooth. Stir in the carrots and walnuts and pour into the pan (s).
Bake the 9-inch cake for 1 hour to 1 hour 10 minutes, or the 8-inch layers for 35 to 40 minutes, until a tester comes out clean. Run a knife around the edge and invert the cake(s) onto a rack. Let cool completely.
If using one layer, split it horizontally with a long serrated knife. Spread the bottom layer with 1/3 of the frosting, top with the other layer and frost the top and side with the remaining frosting.
In a bowl, stir the coconut with a few drops of food coloring until all the coconut is evenly tinted green. Cover the cake with the coconut and scatter candies on top to resemble hidden Easter eggs.