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Preheat oven to 350 degrees F and grease a Bundt or tube pan with coconut oil or dairy-free butter. Sprinkle 2 tsp. dry cake mix into pan, rotating pan and tapping sides until pan is evenly coated.
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In large bowl, combine oil, water, vanilla, eggs, nutmeg and lemon zest with whisk.
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Add cake mix and continue to whisk until well-blended.
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In small bowl, combine chopped pecans and coconut sugar.
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In prepared pan, pour ½ batter and sprinkle pecan-sugar mix over batter. Cover with remaining batter.
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Bake 35-40 minutes or until toothpick inserted in center comes out clean.
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Remove pan from oven and invert on wire cooling rack. Allow cake to cool 10 minutes before gently releasing cake from pan.
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To make glaze, bring ¼ cup water to simmer and stir 2 cups powdered sugar into water. Add more as needed to achieve desired consistency. (Note: Glaze will thicken as it cools.)