Combine all ingredients and blend on low speed for 1 minute then blend at high speed for 2 minutes. Pour into a greased and floured tube pan or fluted tube pan.
Bake for 1 hour at 325 degrees F. Do not open oven during baking. Cake is done when a wooden toothpick is inserted and comes out clean. Let cool on rack for 15 minutes then remove from pan and let cool for 2 hours on rack before icing.
Blend pudding and milk together (mixture will be thick). Pour whipped topping into separate mixing bowl. Add pudding mixture while blending on high speed and blend until fully incorporated.