Cream shortening; add sugar gradually. Add well beaten egg yolks and beat until light and fluffy. Sift flour 3 times with baking powder. Add to creamed mixture alternately with water. Add vanilla. Fold in stiffly beaten egg whites. Bake in 2 greased and floured (9 inch) pans at 350 degrees for 25-30 minutes. Frost with fluffy white frosting and cover with 2 1/2 cups toasted coconut. May put apricot jam between layers before frosting. Toast coconut: Place in metal cake pan and put in 350 degree oven. Turn with fork as coconut browns. Let toast until it is a golden brown color.