From the Super Mario Wiki, the Mario encyclopedia
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This is considered an excellent item at the beginning of the game. The player could collect several Goomnuts, and then cook them at Toad Town. Another benefit is that Goomnuts are free, meaning that cooking Nutty Cakes are a good way to save coins, as they can be used as a replacement for Maple Syrups (which restore the same amount of FP as Nutty Cakes).
One of Koopa Koot's favors involves him asking Mario to bring him a Nutty Cake. The Trading Event also requires the player to trade a Nutty Cake for the second Event.
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