Create a bakery-style coconut cake from scratch that is incredibly moist and fluffy. This recipe features coconut-infused layers and a rich, tangy coconut cream cheese frosting, perfect for any celebration.
Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans. Line the bottoms with parchment paper circles.
In a large bowl, whisk together the flour, sugar, baking powder, and salt.
Add the softened butter to the dry ingredients. Beat with an electric mixer on low speed until the mixture resembles coarse sand.
In a separate bowl, whisk together the eggs, whole milk, canned coconut milk, vanilla extract, and coconut extract until combined.
With the mixer on low, gradually add half of the wet ingredients to the dry mixture, mixing until just combined. Scrape down the sides of the bowl.
Add the remaining wet ingredients and mix on medium speed for about 1 minute until the batter is smooth. Do not overmix.
Gently fold in the 1 cup of shredded coconut by hand.
Divide the batter evenly between the prepared cake pans.
Bake for 30 to 35 minutes, or until a wooden pick inserted into the center comes out clean.
Let the cakes cool in the pans for 10 minutes before inverting them onto a wire rack to cool completely.
To make the frosting, beat the softened cream cheese and butter together until smooth and creamy.
Gradually add the sifted powdered sugar, beating until fully incorporated.
Beat in the 1/2 cup coconut milk, coconut extract, and salt until the frosting is light and fluffy.
If toasting coconut, spread the 1 1/2 cups of coconut in a single layer on a baking sheet. Bake at 350°F (175°C) for 5 to 8 minutes, watching closely until golden brown. Cool completely.
Once cakes are completely cool, place one layer on a serving plate. Spread about 1 cup of frosting evenly over the top.
Place the second layer on top. Frost the top and sides of the entire cake with the remaining frosting.
Press the lightly toasted shredded coconut onto the top and sides of the cake.
Notes
For the most intense coconut flavor, use full-fat canned coconut milk for both the cake batter and the frosting. Do not substitute with refrigerated coconut beverage.
Lightly toasting the shredded coconut before adding it to the frosting coating adds depth and a beautiful color contrast.
If you want a slightly tangier frosting, you can substitute 2 tablespoons of the coconut milk with fresh lime juice.