Coconut Layer Cake stacks multiple rounds of coconut-flavored sponge with coconut cream frosting between each layer and over the top. Toasted shredded coconut pressed onto the outside adds texture and a nutty finish. The full build, including baking and cooling time, takes around 2 hours.
Preheat the oven to 350°F (175°C). Grease and flour three 9-inch cake pans.
In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.
In a large mixing bowl, cream the butter and sugar together using an electric mixer set on medium speed until light and fluffy, about 3-4 minutes. You should see a pale color and feel it smooth when rubbed between fingers.
Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract.
Alternate adding the dry flour mixture and coconut milk to the batter, beginning and ending with the flour mixture. Stir in the shredded coconut.
Divide the batter evenly between the prepared cake 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 about 10 minutes, then turn them out onto a wire rack to cool completely.
Coconut Cream Frosting:
In a large bowl, beat the butter and cream cheese together until creamy and smooth. Gradually add in the powdered sugar, one cup at a time, mixing well after each addition.
Stir in the coconut milk and vanilla extract, beating until thoroughly combined and fluffy.
Assembling the Cake:
Place one cake layer on a serving plate or stand. Spread a layer of frosting over the top. Repeat with the second layer. Top with the third cake layer and cover the top and sides with remaining frosting.
Garnish the top and sides with toasted shredded coconut. Press gently to adhere.
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Notes
For an extra tropical flair, add a splash of coconut liqueur to the frosting mixture.