Preheat over to 325 degrees F. Grease and flour 10-inch tube or 12-cup bundt pan. Sprinkle nuts over bottom of pan. Mix all cake ingredients together. Pour batter over nuts.
Bake 1 hour. Cool approximately 30 minutes and invert onto serving plate. Make glaze while cake is cooling.
Melt butter in a medium size saucepan. Stir in water and sugar. Boil for 5 minutes, stirring constantly. Remove from heat and cool slightly. Stir in rum slowly. While warm, spoon over cake. Prick all over the top of cake with a toothpick. Drizzle and smooth glaze evenly over top and sides, allowing glaze to soak into cake. Keep spooning the glaze over cake until all the glaze has been absorbed.