Ingredients:
For the cake:
- 2 cups all-purpose flour
 - 2 teaspoons baking powder
 - 1/2 teaspoon baking soda
 - 1/2 teaspoon salt
 - 1/2 cup unsalted butter, softened
 - 1 1/2 cups granulated sugar
 - 2 large eggs
 - 1 teaspoon vanilla extract
 - 1 cup unsweetened coconut milk
 - 1 cup shredded coconut
 
For the frosting:
- 1/2 cup unsalted butter, softened
 - 4 cups powdered sugar
 - 1/4 cup unsweetened coconut milk
 - 1 teaspoon vanilla extract
 - 1/2 cup shredded coconut, toasted
 
Instructions:
- Preheat the oven to 350°F and grease two 9-inch round cake pans.
 - In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.
 - In a separate mixing bowl, beat the butter and sugar together until light and fluffy.
 - Add the eggs one at a time, beating well after each addition.
 - Stir in the vanilla extract.
 - Add the dry ingredients to the wet ingredients in three parts, alternating with the coconut milk, starting and ending with the dry ingredients.
 - Fold in the shredded coconut.
 - Divide the batter evenly between the two prepared cake pans.
 - Bake for 30-35 minutes, or until a toothpick inserted into the center of the cakes comes out clean.
 - Allow the cakes to cool completely on a wire rack before frosting.
 
To make the frosting:
- In a large mixing bowl, beat the butter until light and fluffy.
 - Gradually add the powdered sugar, coconut milk, and vanilla extract, beating until smooth and creamy.
 - Stir in the shredded coconut.
 - Place one of the cooled cake layers on a cake plate and spread a layer of frosting on top.
 - Top with the second cake layer and frost the entire cake with the remaining frosting.
 - Sprinkle the top of the cake with toasted shredded coconut.