Check parent directories for Cakefiles. Closes #1686

src/cake.coffee

@@ -44,6 +44,7 @@ helpers.extend global,
 # asynchrony may cause tasks to execute in a different order than you'd expect.
 # If no tasks are passed, print the help screen.
 exports.run = ->
+  process.chdir findCakefilePathSync(fs.realpathSync '.')
   path.exists 'Cakefile', (exists) ->
     throw new Error("Cakefile not found in #{process.cwd()}") unless exists
     args = process.argv.slice 2
@@ -67,3 +68,11 @@ printTasks = ->
 missingTask = (task) ->
   console.log "No such task: \"#{task}\""
   process.exit 1
+
+# Search in current and parent directories for Cakefile
+findCakefilePathSync = (curPath) ->
+  return curPath if path.existsSync path.join(curPath, 'Cakefile')
+  parent = path.normalize path.join(curPath, '..')
+  return findCakefilePathSync parent unless parent == curPath
+  # If none found, stay in current directory
+  return '.'