Step 1: Make the Cake Batter

Preheat the oven to 350°F (175°C). Grease and line two 9-inch round cake pans with parchment paper.

In a medium bowl, whisk together flour, baking powder, and salt. Set aside.

In a large mixing bowl, use an electric mixer to beat the softened butter and granulated sugar together until light and fluffy (about 3–4 minutes).

Add the eggs one at a time, mixing well after each.

Mix in vanilla and coconut extract until just combined.

Alternate adding the flour mixture and coconut milk to the batter in three parts, beginning and ending with the dry ingredients. Mix until just incorporated—do not overmix.

Bake the Cake

Divide the batter evenly between the prepared pans. Smooth the tops with a spatula.

Bake for 25–30 minutes, or until a toothpick inserted into the center comes out clean.

Let the cakes cool in the pans for 10 minutes, then turn out onto a wire rack to cool completely.

Make the Frosting

In a large bowl, beat softened cream cheese until smooth and lump-free.

Add powdered sugar gradually and beat until fully incorporated.

In a separate chilled bowl, whip heavy cream until stiff peaks form.

Gently fold the whipped cream into the cream cheese mixture, being careful not to deflate it.

Stir in vanilla extract and coconut extract for added flavor.

Assemble the Cake

Place one cake layer on a serving plate. Spread an even layer of frosting across the top.

Add the second layer and apply a thin crumb coat of frosting to seal in loose crumbs. Chill for 15 minutes.

Frost the entire cake with the remaining frosting, smoothing with an offset spatula.

Add the Coconut Topping

Gently press sweetened shredded coconut onto the sides and top of the cake.

For deeper flavor and crunch, toast the coconut in a 325°F oven for 5–10 minutes, stirring occasionally until golden.

Chill and Serve

Refrigerate the cake for at least 1 hour before slicing.

Slice and enjoy your light, cloud-like coconut creation.