1) Combine cake mix, water, applesauce, and eggs and blend for approximately 2 minutes, or until thoroughly moistened. Bake in three 8" inch round, greased, cake pans. Cook at about 350 for around 20-25 minutes, or until toothpick comes out clean.
2) Blend together sugar, sour cream, and coconut. Set aside 1 cup of this mixture for later use. The mixture remaining, distribute evenly between the cake layers. Blend the extra cup saved with the whipped topping and spread on the sides and top of the cake. Cover cake in an airtight container and chill for about 1 day before serving