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Preheat the oven to 400°F. Line two 9-inch cake pans with parchment paper, and grease lightly.
In a bowl, cream butter and monk fruit sweetener until thoroughly combined.
Add the egg yolks, vanilla extract and coconut milk and continue to mix.
Slowly add coconut flour, salt and baking powder.
In a separate bowl, whisk the egg whites until stiff peaks form.
Fold the egg whites into the coconut milk mixture, gently making sure to not over mix.
Pour the batter evenly into the cake pans, Bake for 20 minutes or golden brown.
Remove from the oven and allow to cool completely.
Beat together cream cheese, vanilla and monk fruit sweetener.
Add coconut milk to thin out slightly and mix until smooth.
Ensure cakes are cooled completely before frosting. Generously frost the top of one cake.
Place the second cake on top. Press down slightly to remove air bubbles in the frosting.
Frost the top and sides with remaining frosting.
Sprinkle additional shredded coconut on top and sides of the cake.
Slice and serve.