node.js express-coffee Error: ENOENT, no such file or directory

I installed the latest express-coffee and installed node-config too. I created a simple src/config/default.yaml

Database:
    db_host: localhost
    db_name: test

In my src/models/index.coffee

config = require('config').Database

console.log "host: #{config.db_host}"

But when trying to start the server with cake dev or even cake build && node app I am getting the following error:

Cannot write runtime.json file Error: ENOENT, no such file or directory

Tried searching for the issue here and on Google but wasn't able to find anything. Even the few hits on just ENOENT or node-config runtime.json haven't been helpful. Anyone else run into this problem before ?