Preheat oven to 350 degrees F (175 degrees C). Grease and flour a 10 inch Bundt pan.
In a medium bowl, stir together the cake mix and pudding mix.
Add the eggs, sherry, water and oil, mix until smooth.
Sprinkle the chopped nuts into the bottom of the prepared pan.
Pour the batter over the nuts.
Bake for 35 to 40 minutes in the preheated oven, until object inserted comes out clean. Allow cake to cool in the pan for 10 minutes before inverting onto a wire rack to cool completely.
