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Preheat oven to 325°F. Grease a 12-cup bundt cake pan with butter and dust with granulated sugar. Set aside.
In a medium bowl, whisk together the flour, baking powder and salt. Set aside.
In a small bowl, stir together the coconut milk, buttermilk and coconut extract. Set aside.
In the bowl of a stand mixer fitted with the paddle attachment, beat the butter on medium speed. Slowly add the sugar and beat until light and fluffy, about 2-3 minutes.
Add the eggs and egg whites and beat on medium-high speed for about 2 minutes, until the mixture gets smooth in texture and slightly bigger in volume.
With the mixer on low speed, alternately add the flour and coconut mixture. Start and end with the flour and mix well after each addition (⅓ flour, ½ coconut, ⅓ flour, ½ coconut, ⅓ flour).
Stir in white chocolate chips and mix until just combined.
Pour the batter into the prepared pan. Bake for 55 to 60 minutes, or until a toothpick inserted in the center comes out with a few moist crumbs.
Flip onto cake stand once cool.
Prepare coconut buttercream by beating butter and cream cheese together, then add powdered sugar, coconut extract and salt until smooth.
Frost the cooled cake with coconut buttercream and garnish with sweetened shredded coconut.