Prep – Preheat oven to 350°F (175°C). Grease and flour two 9-inch round pans.
Mix Dry – Whisk flour, baking powder, and salt in a bowl.
Cream – Beat butter and sugar until light and fluffy. Add eggs one at a time, then extracts.
Combine – Alternately add flour mixture and coconut milk, beginning and ending with flour. Fold in shredded coconut.
Bake – Divide batter between pans. Bake 25–30 minutes, until a toothpick comes out clean. Cool completely.
For the Frosting: Beat – Beat cream cheese and butter until smooth.
Sweeten – Gradually add powdered sugar, extracts, and coconut milk until fluffy.
Assemble: Layer – Place one cake layer on a plate. Spread with frosting, then top with second layer. Frost the entire cake.
Cover – Press toasted coconut all over the sides and top of the cake.
Chill & Serve – Chill 1 hour before slicing for clean cuts. Store covered in the refrigerator for up to 5 days. Bring to room temperature before serving for the best texture and flavor.
