Preheat the oven at 170ºC/340ºF conventional oven and line 2x 20 cm/8 inch baking pan with parchment paper.
Start by blending the shredded coconut into a flour-like consistency.
Sift together the blended coconut, all-purpose flour, baking powder, baking soda and salt and set it aside.
In a large bowl using an electric hand mixer or in a bowl of a stand mixer, add the butter, and granulated sugar and mix it on medium-high speed for 3 minutes.
Add the eggs two at a time into the mixture and mix until combined.
Continue by adding half the dry ingredients, on low speed, mixing until just combined.
Then add the sour cream, coconut milk, vegetable oil, vanilla extract and coconut extract and mix until just combined.
Then add the other half of the dry ingredients and mix until combined.
Using a rubber spatula, give the batter a gentle fold to make sure all of the ingredients are combined.
Pour the cake into the prepared pans and bake for 20-23 minutes or until a cake tester comes out clean.
Let the cakes cool on a cooling rack. After 10 minutes, gently remove the cake from the cake tin and let the cakes cool down completely.
Take the butter and cream cheese out of the fridge 10 minutes before starting. Cut the butter into cubes. Sift the powdered sugar.
In your stand mixer, using the paddle attachment, start by creaming the butter for 5 minutes on high speed. Scrape down the sides of the bowl and give it another mix for 2 minutes.
Add the cream cheese, vanilla bean paste, coconut milk and coconut extract and cream it together with the butter for 1 minute.
Scrape down the sides of the bowl and on low speed, mix the sifted powdered sugar in 2 parts, letting the powdered sugar mix in with butter and cream cheese before adding the next part. Scrape down the sides of the bowl and give it a final mix for 2 minutes.
Place the first cake layer on your serving dish or cake board on your turntable. If you don’t have a turntable, don’t worry, you can easily decorate the cake without it.
Add 2 big scoops of frosting and with an offset spatula, even it out. Then add the other cake layer and cover the whole cake in a thin crumb coat. Place it in the refrigerator for 20 minutes so it is easier to frost the cake with the remaining buttercream.
Add the remaining frosting, and even it out over the cake. Optionally decorate with coconut flakes.
