Preheat oven to 300 degrees F (150 degrees C). Grease and flour 3 - 9 inch pans. Sift together the 3 cups flour, baking soda, cinnamon, allspice and nutmeg; set aside.
In a large bowl, cream together 1 cup butter and 2 cups sugar until light and fluffy. Add the eggs one at a time, beating well with each addition. Add the flour mixture alternately with the buttermilk; beat well. Fold in raisins and chopped nuts.
Pour batter into three 9 inch pans. Bake in the preheated oven for 55 to 60 minutes, or until a toothpick inserted into the cake comes out clean. Allow to cool.
In a large saucepan, combine water, pineapple, coconut, 2 1/2 cups sugar, 2 tablespoons flour, lemon zest and lemon juice. Bring to a boil and cook, stirring constantly, until thickened. Let cool and spread between each layer and on top of cake.