Cream 1/2 cup butter and the sugar. Add eggs one at a time, beating well after each.
Sift together the flour, baking powder, soda, nutmeg and salt; add alternately with buttermilk to the creamed mixture, beating well after each addition.
Pour into greased and floured cake pans (9 inch?). Bake for 25 minutes.
Meanwhile, combine remaining butter, cream and brown sugar in saucepan. Bring to boil. Pour over warm cake layer; top with coconut and chopped nuts if desired. Cool. Turn cooled untopped cake layer onto platter. Top with other cake layer, topping side down.