Guadalupe River Bottom Puddin' Cake

INGREDIENTS

• 1 cup all-purpose flour
• 1/2 cup butter, softened
• 1 cup finely chopped walnuts
• 1 (8 ounce) package cream cheese, softened
• 1 cup confectioners' sugar
• 1 (8 ounce) container frozen whipped topping, thawed, divided
• 2 (3.9 ounce) packages instant chocolate pudding mix
• 2 cups milk
• 1 teaspoon vanilla extract
• 1 (1.5 ounce) bar chocolate candy bar, grated