Add instant coffee to cake mix and prepare cake according to instructions on package. Pour batter into 2 greased and floured 9 inch cake pans. Bake according to instructions on package. Allow to cool.
With a large serrated knife, split each layer horizontally to make 4 layers. Sprinkle 1/4 cup of the coffee liqueur on each of the 4 layers.
Make the pudding according to package directions, but add the remaining 1/4 cup of coffee liqueur. Spread 1/3 of pudding between each layer of cake as you assemble. Whip cream with sugar until stiff peaks form. Spread on top and sides of cake. Sprinkle with coconut.