Step 1

Preheat oven to 350°F (175°C). Prepare two 9-inch round cake pans.

Step 2

Whisk flour, baking powder, and salt. Beat butter and sugar until fluffy. Add eggs, one at a time. Stir in vanilla and coconut extracts. Alternate dry ingredients and coconut milk into the mixture.

Step 3

Bake for 25–30 minutes. Let cakes cool completely.

Step 4

For frosting, beat cream cheese and powdered sugar until smooth. Whip heavy cream to stiff peaks and fold it into the cream cheese mixture.

Step 5

Layer and frost the cakes. Press shredded coconut onto the sides and top for a cloud-like finish.

Step 6

Chill for 1 hour before serving.