Preheat oven to 325 degrees F (165 degrees C). Grease and flour a 10 inch Bundt pan. Sprinkle chopped nuts evenly over bottom of pan.
In a large bowl, combine cake mix and pudding mix. Mix in eggs, 1/4 cup water, 1/2 cup oil and 3/4 cup Irish cream liqueur. Beat for 5 minutes at high speed. Pour batter over nuts in pan.
Bake in the preheated oven for 60 minutes, or until a toothpick inserted into the cake comes out clean. Cool for 10 minutes in the pan, then invert onto the serving dish. Prick top and sides of cake. Spoon glaze over top and brush onto sides of cake. Allow to absorb glaze repeat until all glaze is used up.
To make the glaze: In a saucepan, combine butter, 1/4 cup water and 1 cup sugar. Bring to a boil and continue boiling for 5 minutes, stirring constantly. Remove from heat and stir in 1/4 cup Irish cream.