all i know is its been around since 1546.
It's an old English phrase concerning the King of England's taxing policies way back when. The tax was refered to as the king's cake. when he nearly doubled it the people said he wanted the cake and more ergo the "eat it too" part. I know this because I once had to research a whole series of old English sayings brought over from the old country.
From the baker who had a good one with the milkman & still wanted more from her husband.
Wow -- deadant7 did a nice bit of research -- but yes, it makes total sense. It means you can't eat the cake and then still have it hanging around the kitchen untouched -- also meaning you have to make choices in life, you can't have everything.
Its actually "You can't have your cake and eat it too"<br />
Theres no "he" involved...<br />
Anyway,.its like with money...You can't save it and spend it at the same time..
The phrase's earliest recording is from 1546 as "wolde you bothe eate your cake, and have your cake?" (John Heywood's 'A dialogue Conteinyng the Nomber in Effect of All the Prouerbes in the Englishe Tongue') alluding to the impossibility of eating your cake and still having it afterwards; the modern version (where the clauses are reversed) is a corruption which was first signaled in 1812.<br />
(copied from wikipedia)