Step 1

Make the cake: Position a rack in the middle of the oven and preheat to 350 degrees. Coat two 8-inch cake pans with baking spray, line the bottoms with parchment paper and set aside (see NOTE).

Step 2

In a medium bowl, sift together the flour, baking powder and salt. In a 2-cup liquid measuring cup or small bowl, combine the coconut milk and vanilla extract.

Step 3

In the bowl of a stand mixer fitted with the paddle attachment — or, if using a hand mixer, in a large bowl — combine the sugar, coconut oil and butter. Beat on medium speed until light and fluffy, 3 to 5 minutes, stopping to scrape down the sides and bottom of the bowl to ensure the mixture is evenly creamed.

Step 4

Reduce the mixer speed to medium-low and add the eggs, one at a time, beating until each is emulsified into the batter before adding another. Scrape down the sides and bottom of the bowl as needed, and after the last egg is added, mix until no streaks remain, but no longer than an additional 20 seconds to avoid beating too much air into the batter.

Step 5

With the mixer on low speed, slowly add about a third of the flour mixture, followed by half of the coconut milk mixture, another third of the flour mixture, and then the remaining coconut milk mixture, stopping to scrape down the sides and bottom of the bowl as needed to make sure everything is evenly mixed. Add the remaining flour mixture and mix until just a bit of the flour mixture remains unincorporated. (The order is dry-wet-dry-wet-dry.) Remove the bowl from the mixer, add 1/2 cup (45 grams) of the shredded coconut and, using a rubber spatula, fold the batter, ensuring it is evenly mixed and no dry pockets of flour mixture or lumps remain. Do not overmix, or your cake will be dense and tough.

Step 6

Divide the batter between the cake pans; each pan should get about 750 grams of batter. Using a small offset spatula or spoon, level the batter in each pan. Grasp each pan by the rim on opposite sides, lift it up about 3 inches and drop it onto the counter 2 or 3 times to release any large air bubbles. Bake in the oven for 35 to 45 minutes, or until a cake tester or toothpick inserted in the middle of the cakes comes out clean. (If planning to toast the coconut, keep the oven on.)

Step 7

Let the cakes cool in their pans on a wire rack for 20 minutes, then run a thin knife or spatula around the edge and gently invert onto a wire rack. Remove the pans and let the cakes cool, upside-down, completely (at least 2 hours), before frosting.

Step 8

Toast the coconut (optional): While the oven is still at 350 degrees, spread out the remaining coconut on a parchment-lined large, rimmed baking sheet and bake for 6 to 8 minutes, or until golden brown, stirring every 2 minutes.

Step 9

Make the frosting: In the bowl of a stand mixer fitted with the paddle attachment — or, if using a hand mixer, in a large bowl — combine the cream cheese, butter, vanilla and salt. Beat on medium to medium-high speed until well combined and fluffy, about 1 minute. Turn the mixer off and add 1 cup of the confectioners’ sugar. Starting on low speed and increasing to medium, beat to combine, then turn the mixer off. Add the remaining confectioners’ sugar, 1 cup or so at a time, and beat, starting on low and increasing to medium, until the frosting is fluffy and is thoroughly combined, 1 to 2 minutes, scraping down the sides and bottom of the bowl as needed. Cover and refrigerate the frosting until ready to use, if necessary.

Step 10

Assemble the cake: If the frosting has stiffened, beat it briefly, by hand or using the paddle attachment on your mixer, until it’s fluffy and spreadable. Lay one cake layer on a plate or platter and top with 1 1/2 cups of the frosting. Spread the frosting into an even layer, then top with the second cake layer. Coat the top and sides of the cake with the remaining frosting. Coat the cake all over with the shredded coconut.

Step 11

NOTE: You may also bake the cakes in two 9-inch pans, but the layers will be somewhat shorter and you may need to reduce the baking time.