Step 1

Preheat the oven to 170°C. Grease and line a 20cm-square cake pan. Process butter and sugar in a processor for 2 minutes until light. Add 1 teaspoon vanilla. Add eggs one at a time, pulsing after each until just combined. In 3 alternating batches, add flour and milk, pulsing to combine. Pour into pan and bake for 55-60 minutes until a skewer inserted in centre comes out clean. Cool for 5 minutes, then turn onto a rack to cool completely.

Step 2

Meanwhile, stir chocolate, cream and remaining vanilla in a heatproof bowl over simmering water until smooth (don't let the bowl touch water). Chill for 20 minutes to thicken. Spread this icing over the cake, then sprinkle top and sides with coconut.